Why Are Medivation Shares Trading Sharply Above The $52.50 Offer?

Medivation Inc MDVN shares have rallied about 8 percent Thursday following confirmation Sanofi SA (ADR) SNY made an unsolicited $52.50 per share offer for the company.

But with shares last trading around $56.30, and despite the stock's more than 50 percent rally since we first heard of takeover chatter in early March, Medivation investors are clearly asking for more from a potential suitor.

So why is the stock trading about $4 over the confirmed bid? Taking a look around the sell-side sentiment Wednesday paints a pretty obvious picture.

• Citi's Yigal Nochomovitz speculated, "With the process taking a hostile turn, other bids are expected to emerge for Medivation."
• Goldman's Salveen Richter suggested a price for Medivation could near $70 per share.
• SunTrust's Peter Lawson highlighted a potential takeover value at $62 per share.
• Credit Suisse analyst Kennen MacKay, in a note from Wednesday, highlighted the Sanofi bid came in "at the low end of our prediction."

It should be noted that amid the apparently bullish comments, analyst recommendations on Medivation are mixed. While Credit Suisse and SunTrust have the equivalent of Buy ratings on the name, both Citi and Goldman Sachs maintain their equivalents of a Neutral rating.