Needham & Company Maintains a 'Buy' on Medidata Solutions (MDSO); Mixed Q3 But Likely Good Enough Given Accelerating 2012 Ahead

Needham & Company maintains a 'Buy' on Medidata Solutions (NASDAQ: MDSO) price target lowered from $35 to $30.

Needham analyst says, "The Q3 report was mixed but likely bolstered by management’s optimism over health of pipelines, new product contribution,
competitive positioning and backlog growth, which suggests the likelihood of accelerating revenue growth in 2012...The report was highlighted by 1) a beat on the top and bottom line driven by a professional services outperformance offset by a more lackluster app revenue performance (down 8% q/q); 2) solid customer adds including 6 new ClinicalForce customers since the acquisition closed in July; and 3) light Q4 guidance on the top and bottom line vs. street targets (albeit relatively maintained for the year). Given nonperformance currently baked in shares (trading at 1.8x EV/2012Revs), we'd buy MDSO shares ahead of ramping and credible product cycles, strengthening backlog growth (which doesn't get updated until early next year on the Q4 call) and accelerated 2012 rev growth."

For an analyst ratings summary and ratings history on Medidata Solutions click here. For more ratings news on Medidata Solutions click here.

Shares of Medidata Solutions closed at $19.85 yesterday.

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