Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of biotechnology company Dendreon (Nasdaq: DNDN) popped higher by as much as 12% after it received a favorable price target from a research firm.

So what: With Dendreon closing at just $6.25 on Tuesday, shareholders have to love research firm Summer Street's initiation of the stock with a buy rating and a price target of $18 -- nearly triple its current levels. That comes in stark contrast to research firm Wedbush Securities, which earlier this month reiterated its underperform rating on Dendreon with a price target of just $4.

Now what: I've said it before and I'll say it again: Ignore these one-day white noise events from analysts. Ratings and price targets are short-term event movers and have little bearing on the overall fair value price of a stock.

What really matters is whether Dendreon's Provenge prostate cancer treatment system can compete against a myriad of new drug hopefuls. Johnson & Johnson's (NYSE: JNJ) Zytiga has proven statistically more effective than Provenge in clinical trials and is priced at just $5,000 per month compared to Dendreon's $93,000 treatment. Also, Medivation's (Nasdaq: MDVN) enzalutamide has breezed through clinical trials with minimal side effects. I feel Provenge may find itself more effective as a combination therapy than a stand-alone, but only time will tell if that's a prophetic or pathetic prediction.

Craving more input? Start by adding Dendreon to your free and personalized watchlist so you can keep up on the latest news with the company.