Bear Stearns cuts Schering-Plough to underperform

Schering-Plough Corp. was given an underperform rating by Bear Stearns analyst John Boris on valuation. The analyst's sum-of-the-parts analysis indicates a value of $14 per share. Bear Stearns notes risk from increasing pressure on base business and underappreciated competitive threats to the cholesterol JV, and dilution risk from an acquisition need to leverage infrastructure as primary reasons to exit the stock. Shares of the Kenilworth, N.J., pharmaceutical company were down 26 cents, or 1.35%, at $18.97 on volume of 5,905,000 shares versus the three-month running average of 7,076,790 shares. (NYSE: SGP)

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