MGI Pharma "buy," target price reduced

01/12/06 - Banc of America

NEW YORK, January 12 (newratings.com) - Analyst David Maris of Banc of America Securities maintains his "buy" rating on MGI Pharma (MOGN), while reducing his estimates for the company. The target price has been reduced from $30 to $24.

In a research note published yesterday, the analyst mentions that the company has recently pre-announced its sales results for Aloxi and Giladel below the estimates. The current valuation of MGI Pharma's stock is attractive, given the company's product pipeline and impressive sales base, the analyst says. The EPS estimate for 2006 has been reduced from $0.41 to $0.10 to reflect the recent pre-announcement.