Genentech "neutral," target price raised

01/11/06 - Robert W. Baird

NEW YORK, January 11 (newratings.com) - Analysts at Robert W Baird reiterate their "neutral" rating on Genentech Inc (DNA), while raising their estimates for the company. The target price has been raised from $93 to $95.

In a research note published this morning, the analysts mention that the company has reported robust 4Q results, with total product sales ahead of the estimates. Genentech has posted higher-than-expected sales of its Herceptin and Rituxan drugs, while Avastin’s sales were short of the consensus, the analysts say. The company has projected 35%-45% EPS growth for 2006. The EPS estimates for 2006 and 2007 have been raised from $1.75 to $1.81 and from $2.40 to $2.44, respectively.