Bear Stearns raises Dendrite rating

Bear Stearns analyst Stephen Unger raised his rating on Dendrite shares to peer perform from underperform given recent weakness to what it considers fair value. Bear Stearns sees an EV of 1.0x revenue and/or 8.0x EBITDA as appropriate for a business in transition (or $10 to $11 per share), justifying its upgrade. While Bear Stearns expect near-term performance to be lackluster, it believes Dendrite is taking appropriate steps to improve financial performance in 2007. Specifically, Dendrite is eliminating excess costs, reorganizing the corporate structure, reviewing pricing models for services, and investing in information technology systems to monitor costs. Shares of Bedminster, N.J.-based pharmaceutical company were up 28 cents, or 2.75%, at $10.45 on volume of 1,060,258 shares versus the three-month running average of 369,166 shares. (Nasdaq: DRTE)

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