Genentech "outperform," estimates reduced

01/12/06 - Bear Stearns

NEW YORK, January 12 (newratings.com) - Analyst Mark Schoenebaum of Bear Stearns maintains his "outperform" rating on Genentech (DNA), while reducing his estimates for the company. The target price is set to $98.

In a research note published yesterday, the analyst mentions that the company has reported its Non-GAAP EPS and revenues for the previous quarter ahead of the estimates and the consensus. Genentech posted robust revenues from its Herceptin and Rituxan drugs and lower-than-consensus US Avastin revenues, the analyst says. The company has guided to 35%-45% EPS growth in 2006, which Bear Stearns believes is conservative.