Schering Plough "peer perform," estimates reduced

02/01/06 - Bear Stearns

NEW YORK, February 1 (newratings.com) - Analyst John Boris of Bear Stearns reiterates his "peer perform" rating on Schering Plough Corporation (SGP), while revising his estimates for the company.

In a research note published yesterday, the analyst mentions that the company's gross margins are expected to be adversely impacted in 2006 by the Integrilin royalty payments, underutilized manufacturing capacity and the growth of low-margin products. The downward revision in Schering Plough's EPS estimate for 2007 reflects the impact of an increased tax rate and higher operating expenses, the analyst adds. The EPS estimate for 2007 has been reduced from $0.71 to $0.70.