Genzyme "outperform," target price raised

07/15/05 - Robert W. Baird

NEW YORK, July 15 (newratings.com) - Analysts at Robert W Baird reiterate their "outperform" rating on Genzyme Corporation (GENZ), while raising their estimates for the company. The target price has been raised from $72 to $75.

In a research note published this morning, the analysts mention that the company reported its 2Q05 non-GAAP EPS significantly ahead of the estimates and the consensus. The upside was driven by robust revenues and margins from the Cerezyme, Synvisc and Thyrogen drugs, which more than offset the sluggish sales of the Renagel drug, the analysts say. Robert W Baird expects Genzyme to continue to witness robust growth momentum in the next year, driven by the potential approval of the Myozyme drug and likely upside from BCII. The EPS estimates for 2005, 2006 and 2007 have been raised from $2.19 to $2.24, from $2.67 to $2.70 and from $3.22 to $3.23, respectively.