UPDATE: Piper Jaffray Downgrades Seattle Genetics to Underweight on Limited Sales Growth Outlook
Piper Jaffray lowers its rating on Seattle Genetics (NASDAQ: SGEN) from Neutral to Underweight and reduces its price target from $22 to $20.
Piper Jaffray comments, "Seattle Genetics launched a great drug ADCETRIS for Hodgkin's lymphoma, has strong corporate partnerships and a healthy balance sheet. But SGEN is an expensive stock trading at >20x ADCETRIS sales. We presently forecast sales of $142.4 million this year and $140 million in 2013. We do not expect to see meaningful sales growth until data supports earlier utilization of ADCETRIS in Hodgkins/ALCL or other CD-30+ cancers. We recommend investors take profits at current levels."
SGEN closed at $25.39 on Friday.
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