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.
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.