CF"Game changing. Not linear-mkt disruptive. SIGNIFANTLY undervalued. $17 tgt!!
Cantor Fitz-"SGMO Scores - Dow Agro/Mons deal Relies on ZFP. Dow/SGMO tech ahead of schedule and more powerful than anticipated. Game changing. New Industry Std. Not Linear but "Market Disruptive". SIGNIFICANTLY UNDERVALUED. $17 target. BUY"
Sangamo Scores - Dow AgroSciences/Monsanto Collaboration Relies on ZFP Tech
o As we highlighted in our note last week (Dow AgroSciences Signals Sangamo Alliance Positive Progress- BUY, September 5, 2007), regarding the Sangamo/Dow AgroSciences alliance, the positive progress we anticipated was confirmed today in the conference call following the Dow AgroSciences/Monsanto collaboration announced before the market open this morning.
o During the call, Dow confirmed that progress involving its collaboration around Sangamo's ZFP technology platform for gene regulation and modification of plants and plant cell cultures � the actionable step toward creating new products after the genes are identified and validated - IS AHEAD OF SCHEDULE AND MORE POWERFUL THAN ANTICIPATED.
o Both Monsanto and Dow characterize their collaboration, which brings together their respective biotechnology platforms to create the first eight-gene stack offering, branded SmartStax, AS THE NEW INDUSTRY-STANDARD.
o We think the transformative nature of the integrated DowAgro technology platform � highly reliant on Sangamo's ZFP technology, in our view � positions the company to achieve sustainable top-line and bottom-line growth involving the world's largest and most lucrative markets � food/agro, bioenergy and bioindustrials � that will flow through to Sangamo.
o We remind investors that technology-driven growth is not linear � it is market-disruptive and we consider the integration of Sangamo's ZFP technology into Dow's platform game-changing. We think SGMO is SIGNIFICANTLY UNDERVALUED and reiterate our BUY rating.