AMGN sees positive outcome to Phase III denosumab trial, with significant vertebral fracture reduction in 7,800 women with osteoporosis. Importantly, adverse safety events were comparable to placebo, which we believe removes a key share-price overhang, positions AMGN for drug's approval, and provides a platform for re-igniting earnings growth after '10, following recent safety and competitive concerns with existing products. We raise our target price by $12 to $66, 16 times our 2008 EPS estimate, with a 1.3 PEG ratio, in line with peers, on our 12% long-term EPS growth rate forecast. -S. Silver

S&P MAINTAINS BUY OPINION ON VERIZON COMMUNICATIONS SHARES (VZ; 34.45):

VZ posts Q2 EPS of $0.67, vs. $0.58, $0.02 ahead of our estimate. Revenues were slightly ahead, but results were helped by lower interest costs. As expected, wireless was the key driver, with strong net additions and data service revenue growth. VZ's enterprise segment appears to be holding up well, showing fractional growth. However, VZ's consumer wireline segment had an increase in access line losses and limited broadband growth, which we believe is the result of a slowing economy. We look VZ's morning call for additional info on growth opportunities in wireless and broadband. -T. Rosenbluth

S&P KEEPS BUY RECOMMENDATION ON SHARES OF CIT GROUP (CIT; 8.13):

CIT announced today that it will repay $2.1 billion of the $7.3 billion drawn on its credit facility, three months prior to its due date. The remaining balance is due over subsequent three years. The move should help to reduce its reliance on shorter-term funding, and was made possible by asset sales and long-term funding arrangements made in the past few months. We are encouraged by the move, and believe it shows the financial stability achieved since March. We think current valuation offers an attractive entry point for what we see as a strong but oversold financial franchise. -M. Albrecht

S&P MAINTAINS STRONG BUY OPINION ON SHARES OF SEMPRA ENERGY (SRE; 54.30):

SRE agrees to acquire EnergySouth (ENSI; 59.65) for $510 million, pending approvals. ENSI owns a small natural gas distribution business in southwest Alabama serving 95,000 customers, as well as midstream gas storage and an Alabama intrastate pipeline. Its storage business has a majority interest in two large salt dome storage projects that are expected to have a 57 Bcf capacity once completed. We continue to like SRE's EPS growth potential, given the various projects that it expects to complete over the next few years. We are keeping our 12-month target price at $70. -C. Muir

Story Source: Business Week