Can A Genentech Upgrade Fix Its Woes? (DNA)

This morning shares of Genentech (DNA-NYSE) are trading up 1.3% at just under $76.00 after a Deutsche Bank upgrade on the stock.  Shares closed at $74.90 yesterday and even traded as low as $74.32 intraday.  Both levels marked lows for the last 52-weeks, but this is actually a critical juncture because the stock broke a two-year low since their was no 'wow-effect' at all this year from teh ASCO conference last weekend.

The Deutsche Bank upgrade this morning from a 'Hold' to 'Buy' is based on discount valuations and upon treatments for colon cancer, MS, and lupus.  The 12-month target is somewhat in-line with many of the older 'buy' targets from Wall Street and is listed as $95.00. 

With Congress looking for ways to scalp biotech drug prices, with an election coming up, and with a chart that is looking like a weak pulse in the ICU one just has to wonder if this upgrade will really change much.  Stocks that trade at a discount usually do so for a reason.

Jon C. Ogg
June 8, 2007

Jon Ogg can be reached at jonogg@247wallst.com; he does not own securities in the companies he covers.