Deutsche Bank upgrades biotechnology company Genentech (DNA).
Analyst Jennifer Chao says she ups to buy from hold on positive interim data for Avastin and chemo for treatment of first-line HER2-neg. metastatic breast cancer (MBC).
She says she is defying clinical odds in many respects and with several key potential hurdles removed, believes Genentech is poised to outperform. She notes at 3 and 0 in colorectal, lung, now HER2-neg MBC cancer, the outlook for Avastin is growing significantly brighter.
Chao raises her $998 million 2005 Avastin sales estimate to $1.278 billion and $1.250 billion 2006 to $1.7 billion, $1.21 2005 earnings per share to $1.28, $1.56 2006 earnings per share to $1.68. She raises her $55 target to $76.