Prudential Equity Group maintained a “favorable” rating for the biotechnology industry and highlighted its top list of names in the sector. The research firm said that while shares of “overweight"-rated Amgen (nasdaq: AMGN - news - people ) have had nice gains in the last two months, they still trade “at a significant discount to its peers with expectations for maturing long-term growth from the company’s three core franchises” in hematology, oncology, and inflammation, respectively. “Near-term catalysts should be key to Amgen’s performance in 2005,” said Prudential, which has a target price of $91 on the company. “Management has indicated that results in the first half of 2005 could be choppy as oncologists assess the impact of Medicare changes on their practices; consequently, we expect guidance to be somewhat conservative.” Amgen will provide 2005 financial guidance on Jan. 27.
