Kyowa Hakko "equal weight"

07/26/05 - Morgan Stanley

LONDON, July 26 (newratings.com) - Analysts at Morgan Stanley maintain their "equal weight" rating on Kyowa Hakko (KY4). The target price is set to ¥700.

In a research note published this morning, the analysts mention that the company has upwardly revised its operating profit guidance for FY05 by ¥2 billion to ¥26 billion. The upward revision is primarily on account of SG&A cost reductions worth ¥500 million and increased sales projections for Allelock, the analysts say. The domestic approval of Patanol has been delayed to July-September 2006, Morgan Stanley adds.