Credit Suisse Raises Price Target on Medidata Solutions (MDSO), Growing Margins Leads to Strong Outlook
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Price: $92.22 --0%
Rating Summary:
5 Buy, 11 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
5 Buy, 11 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Credit Suisse is reiterating its Outperform rating on shares of Medidata Solutions (NASDAQ: MDSO) and is raising its price target by $1 to $27.
The firm reported its Q1 results slightly below expectations, but notes that the quarter gave them even greater confidence in the fundamental outlook for the company. The downside was due to some revenue recognition which was pushed from Q1 to Q2.
Q1 was the seventh consecutive quarter which the company posted double digit customer growth as it won another 19 customer in the quarter. The firm believes that the company will continue to benefit from market place concerns around system integrations/rationalization at its largest competitor, as well as new product offerings, strength in its CRO channel & continued new uptake in EDC offerings.
Throughout the past several quarters the company has risen its gross and operating margin close to its long term targets of 65-70% and 25-30%. While gross margin rose 130 bps Y/Y to 67.89%, operating margins were relatively flat at 17.8%.
The company released its Q2 guidance above expectations as $500 thousand in revenues is shifted from Q1 to Q2. It expects Q2 EPS of $0.32-$0.36 and revenues of $44.5-$45.5 million. MDSO reaffirmed its FY11 revenue guidance of $180-$188 million.
Credit Suisse is tweaking its FY11 and FY12 EPS estimates from $1.55 and $1.92 to $1.48 and $1.81. It is maintaining its FY13 estimate of $1.74.
For more ratings news on Medidata Solutions click here and for the rating history of Medidata Solutions click here.
Shares of Medidata Solutions closed at $23.06 yesterday.
The firm reported its Q1 results slightly below expectations, but notes that the quarter gave them even greater confidence in the fundamental outlook for the company. The downside was due to some revenue recognition which was pushed from Q1 to Q2.
Q1 was the seventh consecutive quarter which the company posted double digit customer growth as it won another 19 customer in the quarter. The firm believes that the company will continue to benefit from market place concerns around system integrations/rationalization at its largest competitor, as well as new product offerings, strength in its CRO channel & continued new uptake in EDC offerings.
Throughout the past several quarters the company has risen its gross and operating margin close to its long term targets of 65-70% and 25-30%. While gross margin rose 130 bps Y/Y to 67.89%, operating margins were relatively flat at 17.8%.
The company released its Q2 guidance above expectations as $500 thousand in revenues is shifted from Q1 to Q2. It expects Q2 EPS of $0.32-$0.36 and revenues of $44.5-$45.5 million. MDSO reaffirmed its FY11 revenue guidance of $180-$188 million.
Credit Suisse is tweaking its FY11 and FY12 EPS estimates from $1.55 and $1.92 to $1.48 and $1.81. It is maintaining its FY13 estimate of $1.74.
For more ratings news on Medidata Solutions click here and for the rating history of Medidata Solutions click here.
Shares of Medidata Solutions closed at $23.06 yesterday.
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