MARKET TALK: Street Continues To Chew On Genzyme Deal Scenario

26th Jul 2010 17:45

12:45 (Dow Jones) Genzyme (GENZ) up 7.2% to $67 as Wall Street continues to mull over Friday's WSJ report of a takeover approach by France's Sanofi-Aventis (SNY). Lazard Capital believes a deal is possible and sees a price of $73 as reasonable. Baird puts the value in the low-to-mid $60 range with about $10 of additional upside possible, but warns investors to trim holdings citing the changed risk/reward profile. Meanwhile, Bernstein sees potential gains for investors with a strong stomach. The firm thinks other buyers, such as GlaxoSmithKline (GSK), could enter the race and drive a slow process to a deal. Ultimately, firm doesn't expect GENZ to support a deal until its hits the $75 to $85 range. ([email protected]) Call us at (212) 416-2180 or email [email protected] Visit the Market Talk blog at www.djnmarkettalk.com (END) Dow Jones Newswires July 26, 2010 12:45 ET (16:45 GMT)