Citigroup Reiterates Buy Rating, $129 PT for Medivation

In a company update published earlier today, Citigroup Inc. reiterated its Buy rating and $129.00 price target for Medivation, Inc. MDVN. Citigroup went on to say “Our target price of $129 is based on 30x our 2015 non-GAAP EPS estimate of $5.68 and discounted by 15% annually. We use a 30x forward multiple, which appropriately reflects the lucrative opportunity in prostate cancer and potential that Astellas might acquire Medivation to consolidate full global rights to the drug. We apply a discount rate of 15% as we believe the solid efficacy data and clean safety profile bode well for clinical adoption and commercial success for MDV3100. We use 2015 as our valuation year as we believe it will be the second year of profitability for Medivation which will accurately reflect the future prospects for earnings growth.” Medivation, Inc. closed on Friday at $82.68.