Maxim Raises Medivation Price Target Following Solid Quarter Results


Maxim Group analyst Jason Kolbert maintained a Buy rating on Medivation (NASDAQ:MDVN) and slightly raised his price target to $118 (from $112), as the company reported strong Xtandi-driven quarter, with U.S. net sales of XTANDI capsules of $181 million. Ex-U.S. net sales of XTANDI for the were $120 million.

Kolbert explained his new price target saying, “We have projected Xtandi sales through 2020. We assume a Xtandi launch in Europe, generating global revenues to Medivation of just over $1 billion by 2017 and more than $1.5B by 2020. We project these revenues in our FCFF model. Xtandi is an approved product so we use a low discount rate of 10% on our 2020 projected EPS of $6.27. Our triangulated and averaged metrics-FCFF, SOP, and discounted EPS support a 12-month price target of $118.”

According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Jason Kolbert has a total average return of 4.5% and a 42.1% success rate. Kolbert has a 56.6% average return when recommending MDVN, and is ranked #805 out of 3365 analysts.

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