Genentech, Inc. (DNA)
Genentech, Inc. (<a href="javascript:void(0)" onclick="quotepop('dna')">DNA</a>) - Genentech is one of the world's largest biotechnology companies. We are reiterating our rating on Genentech at a Buy, and moving our target price to $95 per share. <p> We remind investors that we upgraded the name in February based on the "Accelerated Approval of Avastin" for 1st-line metastatic breast cancer. Since that time, Avastin sales have outpaced expectations. <p> However, the real mover of the stock has been Roche's unsolicited $89/share bid to acquire the 44.2% of Genentech it does not already own. Genentech rejected the bid as inadequate in August and there has been little update since. The tightening credit markets and significant stock price declines may have scared Roche into waiting a few more months. However, ultimately we believe a deal will get done at above $95 per share.
December 21, 2008 | Filed Under Stock Picks
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