Deutsche Bank Downgrades Dendreon Corp. to Sell (DNDN)
Dendreon Corp. (NASDAQ:DNDN) was downgraded by investment analysts at Deutsche Bank from a “hold” rating to a “sell” rating in a note issued to investors on Friday, TheFlyOnTheWall.com reports. They currently have a $3.03 price target on the stock, down from their previous price target of $3.10. Deutsche Bank’s price objective points to a potential downside of 5.02% from the stock’s previous close.
The analysts wrote, “We see several headwinds over next 12-18 mos that in our view are likely to erode current Dendreon shares. Provenge sales continue to disappoint and the co remains unprofitable. Per our calculations, even if there is drastic restructuring & significant cost cuts, spend may still outpace rev growth in the near term. Consequentially, we believe that the terms of a debt refinancing may have a negative impact on equity holders. We are downgrading to Sell b/c rev growth may not outpace cost cuts & increasing debt expense costs associated w/ a refinancing. We are now modeling peak sales at $450M vs. $517M prev.”
Shares of Dendreon Corp. (NASDAQ:DNDN) traded down 8.78% during mid-day trading on Friday, hitting $2.91. The stock had a trading volume of 5,865,604 shares. Dendreon Corp. has a 52-week low of $3.10 and a 52-week high of $7.22. The stock’s 50-day moving average is $4.18 and its 200-day moving average is $4.3. The company’s market cap is $444.3 million.
Dendreon Corp. (NASDAQ:DNDN) last announced its earnings results on Thursday, August 8th. The company reported ($0.45) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.42) by $0.03. The company had revenue of $73.30 million for the quarter, compared to the consensus estimate of $75.61 million. During the same quarter last year, the company posted ($0.61) earnings per share. Dendreon Corp.’s revenue was down 8.3% compared to the same quarter last year. On average, analysts predict that Dendreon Corp. will post $-1.68 earnings per share for the current fiscal year.
DNDN has been the subject of a number of other recent research reports. Analysts at Zacks reiterated a “neutral” rating on shares of Dendreon Corp. in a research note to investors on Wednesday, August 14th. They now have a $3.25 price target on the stock. Separately, analysts at Credit Suisse cut their price target on shares of Dendreon Corp. from $4.00 to $3.00 in a research note to investors on Friday, August 9th. They now have a “neutral” rating on the stock. Finally, analysts at Cantor Fitzgerald cut their price target on shares of Dendreon Corp. from $7.00 to $5.00 in a research note to investors on Friday, August 9th. They now have a “hold” rating on the stock.
Nine equities research analysts have rated the stock with a sell rating, eight have given a hold rating and four have given a buy rating to the stock. The company presently has an average rating of “Hold” and a consensus price target of $4.82.
Dendreon Corporation (NASDAQ:DNDN) is a biotechnology company focused on the discovery, development and commercialization of therapeutics that may significantly improve cancer treatment options for patients.
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