Shares of Celgene Corp. rose Monday along with a recovering stock market, as the biotechnology company prepares to report third-quarter financial results and Robert W. Baird upgraded the stock.
Celgene shares rose $6.94, or 12.7 percent, to $61.46. The stock has traded between $41.26 and $77.39 over the last 52 weeks. The gains came as the broader market caught a boost from government pledges to support the global banking system after a prior weeklong pummeling in the financial markets.
Robert W. Baird analyst Christopher Raymond upgraded Celgene to "Outperform" from "Neutral" and raised the price target to $66 from $65. He said recent turmoil in the markets has created a better risk-reward profile for Celgene and the company will likely make investors happy with its third-quarter profit report.
Celgene is scheduled to release those results Oct. 23.
"We understand valuation calls are difficult in this environment," Raymond said in a note to investors. "We do, however, think this stock is particularly well poised to outperform through 2008, based on factors both market driven and Celgene specific."
He said the company's cancer drug Revlimid is gaining in sales and could top his third-quarter forecast for $345 million. Also, in general, he said large-cap biotech stocks like Celgene will likely lead a market recovery, with earnings reports providing much of the positive momentum.
Still, he said, the company faces continuing competition from rival Millennium Pharmaceuticals' Velcade.
Celgene shares rose $6.94, or 12.7 percent, to $61.46. The stock has traded between $41.26 and $77.39 over the last 52 weeks. The gains came as the broader market caught a boost from government pledges to support the global banking system after a prior weeklong pummeling in the financial markets.
Robert W. Baird analyst Christopher Raymond upgraded Celgene to "Outperform" from "Neutral" and raised the price target to $66 from $65. He said recent turmoil in the markets has created a better risk-reward profile for Celgene and the company will likely make investors happy with its third-quarter profit report.
Celgene is scheduled to release those results Oct. 23.
"We understand valuation calls are difficult in this environment," Raymond said in a note to investors. "We do, however, think this stock is particularly well poised to outperform through 2008, based on factors both market driven and Celgene specific."
He said the company's cancer drug Revlimid is gaining in sales and could top his third-quarter forecast for $345 million. Also, in general, he said large-cap biotech stocks like Celgene will likely lead a market recovery, with earnings reports providing much of the positive momentum.
Still, he said, the company faces continuing competition from rival Millennium Pharmaceuticals' Velcade.
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