Baird Raises Its Price Target On Dendreon (DNDN) After New CEO, But Says Don't Count On a Takeout
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Price: $0.13 --0%
Rating Summary:
2 Buy, 15 Hold, 9 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
2 Buy, 15 Hold, 9 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Baird lifted its price target on Dendreon (NASDAQ: DNDN) to $15 following news of new leadership at the company but is maintaining its Neutral rating.
The firm said news that John Johnson will takeover as CEO, replacing Mitchell Gold, is a "big positive." The firm notes that while only a Dendreon board members since August 2011, Mr. Johnson has 30+ years' commercial experience, most notably as CEO of ImClone, whcih was sold to Eli Lilly and most recently as CEO of Savient Pharmaceuticals Inc (SVNT).
"Given Provenge's many challenges, we like the timing of this change," Baird analyst Christopher Raymond said.
However, Mr. Raymond is keeping his Neutral rating saying commercial challenges aren’t going away. Specically, he highlighted that Zytiga remains an impediment to Provenge uptake among both med/oncs and urologists MDV3100 not too far behind.
While Mr. Johnson's has an M&A history, Raymond said the take-out argument is "a bit of a long putt." On this, he notes that a deal would be margin-dilutive to any acquirer, integration would be difficult and DCF is weak.
For an analyst ratings summary and ratings history on Dendreon click here. For more ratings news on Dendreon click here.
Shares of Dendreon closed at $13.58 yesterday.
The firm said news that John Johnson will takeover as CEO, replacing Mitchell Gold, is a "big positive." The firm notes that while only a Dendreon board members since August 2011, Mr. Johnson has 30+ years' commercial experience, most notably as CEO of ImClone, whcih was sold to Eli Lilly and most recently as CEO of Savient Pharmaceuticals Inc (SVNT).
"Given Provenge's many challenges, we like the timing of this change," Baird analyst Christopher Raymond said.
However, Mr. Raymond is keeping his Neutral rating saying commercial challenges aren’t going away. Specically, he highlighted that Zytiga remains an impediment to Provenge uptake among both med/oncs and urologists MDV3100 not too far behind.
While Mr. Johnson's has an M&A history, Raymond said the take-out argument is "a bit of a long putt." On this, he notes that a deal would be margin-dilutive to any acquirer, integration would be difficult and DCF is weak.
For an analyst ratings summary and ratings history on Dendreon click here. For more ratings news on Dendreon click here.
Shares of Dendreon closed at $13.58 yesterday.
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