Ariad +13% as BMO upgrades, assets likely to attract M&A interest

|By:, SA News Editor

Ariad Pharmaceuticals (ARIA +13.1%) is trading near the best levels of the session following an intraday upgrade from BMO Capital's Jim Birchenough, who raised his rating to Outperform from Market Perform with a $14 price target (from $8).

The analyst sees significant value in the company's assets and he believes it will attract interest from large pharmaceutical companies.

The recent stock advance is tied to a Daily Mail report about a possible takeover; Ariad acknowledged to BMO that all options, including partnerships and M&A, are on the table.