MGI Pharma "outperform," target price reduced

10/05/05 - Robert W. Baird

NEW YORK, October 5 (newratings.com) - Analysts at Robert W Baird maintain their "outperform" rating on MGI Pharma Inc (MOGN), while reducing their estimates for the company. The target price has been reduced from $35 to $30.

In a research note published this morning, the analysts mention that the downward revision in the estimates is to reflect the company's updated guidance, following the closing of the Guilford acquisition and higher share count. The healthy sales of MGI Pharma's Aloxi drug and the expected launch of Dacogen in early-2006 would drive the company's stock performance going forward, Robert W Baird adds. The EPS estimates for 2005 and 2006 have been reduced from $0.46 to $0.35 and from $0.85 to $0.62, respectively.