Company

Bank

Analyst

Coverage

Opinion

Wk chg

10/26 cls

Amgen Inc. (NASDAQ:AMGN)

BMO Capital Markets

Jim Birchenough

Price target

Market perform

1%

$87.63

Deutsche Bank

Robyn Karnauskas

Upgrade

Buy (from hold)

Jefferies

Eun Yang

Price target

Buy

Birchenough raised his target to $83 from $74 after Amgen reported a 3Q12 adjusted diluted EPS of $1.67, above the Street's expectation of $1.47. Revenues were $4.3B, beating the Street's $4.25B estimate. Amgen increased its 2012 revenue guidance to $17.2-$17.3B from $16.9-$17.2B and its 2012 EPS guidance to $6.50-$6.60 from $6.20-$6.35 (see "EPS Watch," A20). Birchenough raised his 2012 revenue estimate to $17.25B from $17.04B and his 2012 EPS estimate to $6.61 from $6.30.

Karnauskas also raised her target to $108 from $84 on earnings. She believes Amgen's "emerging pipeline represents earnings upside" starting in 2014.

Yang raised her target to $100 from $92 on earnings. She said the company is a "good value play" and increased her 2012 EPS estimate to $6.62 from $6.43.

Gilead Sciences Inc. (NASDAQ:GILD)

Leerink

Howard Liang

Price target

Outperform

1%

$67.07

Needham

Alan Carr

Price target

Buy

Liang raised his target to $79 from $68 after Gilead reported 3Q12 financial results that beat the Street's estimates and increased its full-year sales guidance to $9.1-$9.2B from $8.8-$9.0B. Non-GAAP diluted EPS for the quarter was $1, beating the Street's estimate by $0.06, but down from $1.02 in 3Q11. Revenues grew 14% to $2.4B, above the Street's estimate of $2.3B and above Liang's estimate of $2.28B (see "EPS Watch," A21). Liang raised his 2012 revenue guidance to $9.41B from $9.25B and his 2013 revenue guidance to $10.24B from $10.16B.