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Morgan Joseph Starts Dendreon (DNDN) at Hold, Waiting for Better Entry Point

June 30, 2009 9:11 AM EDT
DNDN Hot Sheet
Rating Summary:
    3 Buy, 18 Hold, 7 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 20 | Down: 11 | New: 38
Morgan Joseph initiates coverage on Dendreon Corporation (Nasdaq: DNDN) with a Hold rating. The firm said there is high probability of approval for Provenge, but they are waiting for a better entry point.

The firm notes, "Since metastatic prostate cancer remains a large underserved market with limited options once patients fail hormone therapy, we believe long-term growth and ex-US partnership prospects for Dendreon are strong. We expect worldwide Provenge sales to cross $1.0 billion in 2014."

The firm said Dendreon's current market valuation of $25.49 is "unattractive" with the stock trading close to the firm's intrinsic value estimate of $26. They believe that growth investors will get an opportunity to invest in Dendreon at a better valuation.

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