1243 [Dow Jones] STOCK CALL: JPMorgan cuts Sigma Pharma (SIP.AU)...

1243 [Dow Jones] STOCK CALL: JPMorgan cuts Sigma Pharma (SIP.AU) FY08, FY09, FY10 and FY11 normalized EPS estimate by 4% to 9.5 cents from 9.9 cents, by 5% to 12.1 cents from 12.8 cents, by 5% to 12.7 cents from 13.4 cents, by 4% to 14.1 cents from 14.6 cents and by 3% to 15.3 cents from 15.7 cents to reflect higher interest costs and JPM's forecast FY08 profit forecast of A$87 million. "Pharmacy wholesaling continues to deliver sales growth without associated profit growth and Embrace is not delivering the compliance rates expected for generics or over-the-counter," JPM says in a client note. "With the possibility of minor earnings growth in the next three years, limited potential for positive earnings surprise, and management credibility under question, it is difficult to see the stock re-rate in the next 6-12 months." Keeps neutral, A$1.60 price target. Last trade 3.8% to A$1.38. (ABH)