$MDVN Raises PT On Increased International Estimates

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Wedbush Securities Reiterates Outperform, Raises PT On Medivation On Increased International Estimates

In a report published Wednesday, Wedbush Securities analyst David M. Nierengarten reiterated an Outperform rating on Medivation Inc. (NASDAQ: MDVN), and raised the price target from $118.00 to $138.00.

In the report, Wedbush Securities noted, “Raising our international Xtandi estimates on global expansion opportunity. We are raising our penetration estimate into the European urology market as we expect the sales trajectory in the EU to more closely approximate the US ramp. We note that Zytiga has consistently generated greater sales outside the US, and expect Xtandi sales to be similar after adjusting for launch time (see Fig. 1 and 2). Our estimates exceed the ex-US sales estimates implied from MDVN’s 2015 guidance. MDVN has guided to US Xtandi sales of $1.050B to $1.125B (our estimate $1.115B) and non-GAAP collaboration revenue of $600M to $650M; with MDVN sharing about 15% of ex-US sales in 2015, the guidance at midpoint estimates implies ex-US sales of $542M (vs. our $764M estimate). We note that MDVN has previously provided conservative guidance, with original 2014 guidance projecting full-year Xtandi sales of $500M to $535M in the US (actual 2014 US sales were $680M).”

Medivation closed on Tuesday at $129.82.

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