UPDATE: Citigroup Reiterates Buy Rating, Raises PT on Medivation
In a report published Wednesday, Citigroup reiterated its Buy rating on Medivation (NASDAQ: MDVN), and raised its price target from $64.50 to $70.00.
Citigroup noted, “We are raising ests to reflect the higher Xtandi US price, earlier than expected FDA approval for post-chemo, partially offset by a more modest tiered ex-US royalty rate, and a slight delay to timing of pre-chemo ph 3 data. Our model is still conservative as it models a slower and shallower launch relative to Zytiga, conservative ex-US pricing, and does not account for potential rapid approval in Europe by March (based on Zytiga's approval timing). Based on the first 2 wks of prescriptions, Xtandi is off to a solid launch in the U.S. Our doc checks are very constructive and compendia listing for pre-chemo might be received soon. Despite the strong appreciation, we remain bullish on the stock especially because our new analysis suggests that the pre-chemo market should be bigger than expected. We are raising EPS ests. Our new TP is $70 based on a 30x (unchanged) our 2015 EPS est of $3.10.”
Medivation closed on Tuesday at $56.96.
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