) to buy from neutral.
Analyst David Witzke says he upgraded on valuation. He believes Street expectations for Erbitux are now at more appropriate levels. He continues to believe Erbitux will be a blockbuster drug by 2007.
He notes ImClone is looking for further approvals for the drug for head and neck cancer. He recommends investors purchase the stock in front of growth evidence. While the upgrade may be a month early, he sees little downside to the stock at these levels.