MGI Pharma downgraded to "neutral"
Friday, February 06, 2004 12:49:59 PM ET
Banc of America
NEW YORK, February 6 (New Ratings) - Analysts at Banc of America Securities downgrade MGI Pharma Inc (MOGN) from "buy" to "neutral." The target price is set to $48.
Shares of MGI Pharma, an oncology-focused biopharmaceutical company, are currently trading at $48.62.
According to Banc of America Securities' research note published this morning, the downgrade in rating is based on valuation. The company's share price has appreciated significantly since July 2003, the analysts mention. MGI Pharma's shares are currently trading at a price above the target price, the analysts say. The company is scheduled to report healthy results and encouraging guidance on February 11, which is already factored into its share price, the analysts add.
According to Banc of America Securities, the demand for MGI Pharma's drug, Aloxi, is expected to robust in 2004. The analysts believe that the company's performance is likely to be driven by Aloxi in the near future, and 2004 estimates for Aloxi have been raised from $75 million to $85 million. The company's revenues and profits are expected to be boosted by the expansion of the Aloxi agreement with Helsinn for a PONV indication and oral CINV formulation, the analysts mention.
The EPS estimate for 2003 is -$2.12. The EPS estimate for 2004 has been raised from -$0.21 to -$0.01.
Banc of America Securities downgrades MGI Pharma Inc from "buy" to "neutral”
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