MDSO comments on RFPs recovery encouraging: Citi

Charles Boorady of Citi maintains its “buy” rating on Medidata Solutions Inc (NASDAQ: MDSO), while raising its earnings estimates for the company. The target price for MDSO is set to $63.

MDSO posted its Q3 cash EPS excluding amortization and stock expense significantly ahead of the estimates. MDSO’s robust results were driven by higher-than-expected revenues, better gross margin and lower operating expenses. The shift to higher margin application services benefited MDSO’s results, Citi said.

Citi considers Medidata Solutions’ comments on the recovery in RFPs in 3Q09 and 4Q09 as encouraging. Citi has pushed its EPS estimates for 2009 and 2010 from $0.39 to $0.55 and $0.71 to $0.79, respectively.