Bloomberg Anywhere Remote Login Bloomberg Terminal Demo Request


Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.


Financial Products

Enterprise Products


Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000


Industry Products

Media Services

Follow Us

Markets & Finance

CIBC Cuts Schering-Plough to 'Sector Underperform'

CIBC World downgraded Schering-Plough (SGP) to sector underperform from sector perform.

Analyst Mara Goldstein says she's downgrading to due to the dividend cut and a cloudy future for the drugmaker. She notes Schering plans to cut its 17 cents quarterly dividend to 5 cents, and says its second-half earnings could be below the first half, and that its 2004 earnings could drop below 2003's earnings. Schering also will slash more than 1,000 jobs.

Goldstein says the dividend cut is a surprise, as she had believed Schering would use its borrowing capacity to finance the dividend. She notes Schering's earnings shortfall is less of a surprise as her estimates -- now under review -- had been flat sequentially.

Also, Goldstein says besides financial uncertainty, she thinks management's credibility has been severely bruised, and says the stock's valuation is "a question mark".

blog comments powered by Disqus