Cantor Weighs In On Dendreon Leadership Change

Dendreon (NASDAQ: DNDN) shares opened almost five percent lower Wednesday after John Johnson, President, Chairman and CEO said he would be stepping down from the company.

Cantor Fitzgerald analyst Mara Goldstein weighed in on the executive change. Goldstein thinks Johnson's resignation may, “signal a change in course to investors,” which may fuel short covering in the short term. According to the last Nasdaq report, 27.55 percent of the company was sold short.

The Cantor note also emphasized that corporate activity limiting profitability and the competitive environment are major challenges Dendreon faces moving forward.

Cantor Fitzgerald has a $4 price target and Hold rating on Dendreon, which is currently trading at $2.04.