Zacks Investment Research downgraded shares of Medivation, Inc. (MDVN) from NEUTRAL to UNDERPERFORM on August 16, 2012, with a target price of $89.00.
Medivation's second quarter loss of $0.15 per share was well below the Zacks Consensus Estimate of a profit of $0.23. Revenues of $42.9 million also missed the Zacks Consensus Estimate. Given the huge miss, loss estimates for Medivation have gone up significantly. The Zacks Consensus Loss Estimate for 2012 has gone up to $1.44 per share from the earlier estimate of a loss of $0.68. Meanwhile, the 2013 loss estimate has gone up to $2.34 per share from $0.87 per share. We are downgrading Medivation to Underperform. The stock carries a Zacks #5 Rank – short-term Strong Sell' rating. We are concerned about the company's dependence on a single pipeline candidate, enzalutamide. Any negative news on the regulatory/development front would be a major setback for the stock.
Get all Zacks Research Reports and be alerted to fast-breaking buy and sell opportunities every trading day.
To get a free copy of the research report on Medivation, Inc. (MDVN),
click here.
For more information about research offerings from Zacks Investment Research, visit
Zacks.com .
Be the first to comment