10 May

What Do Analysts Recommend for Medivation?

WRITTEN BY Jillian Dabney

Medivation’s share price estimates

The above table shows 16 brokerage firms and their estimated target prices for Medivation (MDVN). The consensus 12-month target price for the company is $62.5. This target translates to a ~3.8% return compared to Medivation’s closing price of $60.25 on May 6.

What Do Analysts Recommend for Medivation?

According to a Bloomberg consensus of 21 brokerage firms dated May 9, 57.9% rated Medivation a “buy” and 42.1% rated it a “hold.”

For a better understanding of Medivation’s valuation, please see How Does Medivation’s Cancer Drug Xtandi Affect Its Valuation? and Why Is Medivation at a Premium on an EV-to-EBITDA Basis?

What do analysts recommend for Medivation’s peers?

According to a Bloomberg survey of four analysts dated May 9, 2016, 75% of analysts issued a “buy” rating for Roche holding (RHHBY) and 25% rated the stock a “hold.” None of the analysts issued a “sell” rating.

As per ratings from 25 analysts in a Bloomberg on May 9, 64% rated Pfizer (PFE) a “buy” and 36% suggested a “hold.”

Bloomberg consensus of five analysts on May 9 indicated that 60% issued a “buy” rating for Sanofi (SNY) and 40% recommended a “hold.”

The pharmaceutical and biotechnology industry is quite volatile and is currently undergoing a correction under pricing pressure from the US government. So any concentrated position in a particular stock is risky. To mitigate this kind of risk, you can invest in funds like the SPDR S&P Biotech ETF (XBI). XBI invests 2.1% of its total holdings in Medivation.

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