Dendreon (NASDAQ: DNDN)‘s stock had its “underperform” rating restated by equities researchers at Wedbush in a report issued on Monday. They currently have a $4.00 target price on the stock, down from their previous target price of $5.00.
The analysts wrote, “We would caution investors who believe that DNDN could be a takeover target. In our view, an acquirer would be very unlikely to purchase a low-margin product like Provenge in a rapidly evolving treatment paradigm. While some might be tempted to think that DNDN’s ~3x sales multiple might make it attractive to an acquirer, our view is that the low multiple to current year sales estimates is justified, with Provenge’s low margins and uncertain market position.”
Shares of Dendreon traded down 12.57% during mid-day trading on Monday, hitting $5.91. Dendreon has a one year low of $6.46 and a one year high of $42.00. The company’s market cap is $873.2 million.
A number of other analysts have also recently weighed in on DNDN. Analysts at Jefferies Group (NYSE: JEF) reiterated an “underperform (n/a)” rating on shares of Dendreon in a research note to investors on Monday. Separately, analysts at Canaccord Genuity reiterated a “hold” rating on shares of Dendreon in a research note to investors on Wednesday, May 23rd.
Dendreon Corporation (Dendreon) is a biotechnology company focused on the discovery, development and commercialization of therapeutics that may improve cancer treatment options for patients.