DB Alex Brown Boosts Guidant to 'Strong Buy'
DB Alex Brown upgraded Guidant Corp. (GDT ) to strong buy from buy.
Analyst Sheryl Zimmer says the agreement gives Guidant the ability to sell a paclitaxel coated Penta stent. She sees this ingenious (though unusual) agreement as an important positive as it meaningfully accelerates Guidant's drug-coated stent development -- putting them only six months behind Johnson & Johnson.
Zimmer says this news, coupled with recent positive developments for its Ancure AAA stent graft, indicates Guidant may finally be getting themselves back on a growth trajectory. She has a $42 target.