Credit Suisse: Medivation Could Be Worth $54 To $75 In Takeout, But Management Won't Sell
After Wednesday's market close, news reports suggested that Medivation Inc (NASDAQ: MDVN) had hired bankers to defend the company against acquisition.
Credit Suisse’s Kennen MacKay maintained an Outperform rating on the company, while raising the price target from $48 to $49.
Related Link: Reports: Medivation Has No Plans To Sell Itself
MacKay mentioned that while the company had become an acquisition target following the pullback in its stock valuation, management does not appear to be interested in selling, citing his team's own "conversations" with company executives.
Following an acquisition scenario analysis of companies that have expressed interest in acquiring U.S. oncology firms, MacKay stated Medivation could be worth $54-$59 in terms of operational synergies and $60-$75 with leveraged tax benefits.
“However, given MDVN’s manufacturing and intellectual property is already domiciled in the US, it is unclear whether tax advantages could be leveraged in a deal,” MacKay noted.
Latest Ratings for MDVN
|Sep 2016||SunTrust Robinson Humphrey||Terminates||Neutral|
|Aug 2016||BMO Capital||Maintains||Market Perform|
© 2016 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.