S&P Raise Genzyme (GENZ) to Buy from Hold

S&P raised Genzyme (NASDAQ: GENZ) to a Buy from Hold in the Aug. 4, edition of The Outlook, based on reports that Sanofi Aventis (NYSE: SNF) is going to acquire Genzyme.

In a related story, Shire’s CEO, Angus Russell said of the proposed merger, “I'm not sure it changes anything in regards to competition," on Wednesday after the British company, a rival for Genzyme, unveiled forecast-beating quarterly results.

Here are quotes from the S&P report:

“According to an unconfirmed report in the Wall Street Journal on July 23, Sanofi-Aventis approached Genzyme about acquiring the company for undisclosed terms. We view the report as credible, after Sanofi-Aventis’s recent disclosure that it is interested in acquiring a U.S.-based biotech firm. We expect Genzyme investors to push for a deal, given recent challenges and an activist shareholder presence. We raised our target price by $14 to $72.”