The analysts wrote, “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.”
Shares of Medivation traded down 1.26% during mid-day trading on Monday, hitting $81.64. Medivation has a one year low of $14.32 and a one year high of $89.46. The company’s market cap is $2.959 billion.
Medivation last issued its quarterly earnings data on Tuesday, May 8th. The company reported $0.01 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.19 by $1.18. The company’s revenue for the quarter was up 150.3% on a year-over-year basis. On average, analysts predict that Medivation will post $-0.70 earnings per share next quarter.
Other equities research analysts have also recently issued reports about the stock. Analysts at Wedbush reiterated an “outperform” rating on shares of Medivation in a research note to investors on Monday. They now have a $100.00 price target on the stock, up previously from $86.00. Separately, analysts at Brean Murray reiterated a “buy” rating on shares of Medivation in a research note to investors on Monday. Finally, analysts at Jefferies Group (NYSE: JEF) raised their price target on shares of Medivation to $105.00 in a research note to investors on Monday. They now have a “buy” rating on the stock.
Medivation, Inc. is a biopharmaceutical company focused on the rapid development of small molecule drugs to treat serious diseases for which there are limited treatment options.