UPDATE: Summer Street Initiates Dendreon with Buy, $18 PT on Entry Opportunity

Summer Street initiates its coverage on Dendreon

with a Buy rating and a $18 price target. Summer Street comments, "DNDN's stock has declined >80% since the company announced slower than expected Provenge adoption and lowered prior 2011 revenue guidance during the 2Q11 earnings call. At the current enterprise value of ~$970MM, we believe the market has factored in an extremely bear-case scenario for both top- and bottom-line growth, thereby creating a great buying opportunity. We expect significant upside to be driven by continued penetration of Provenge and an operational turnaround led by new management with substantial experience in commercializing oncology products." DNDN closed at $6.25 on Tuesday.