Topeka Capital Downgrades Medidata Solutions (MDSO) to Hold

Topeka Capital downgraded Medidata Solutions (NASDAQ: MDSO) from Buy to Hold with a price target of $55.00 (from $48.00). The change is tied to valuation.

Analyst Eugene M. Mannheimer said, "While MDSO reiterated its full year outlook, our model suggests they are tracking to the high end of their EPS view and the middle of their revenue guidance of $392-412MM. We note CFO Cory Douglas is stepping down while the former CFO of SAP North America (SAP-$74.82:NR) Rouven Bergmann will become CFO on May 18. Our new $55 target incorporates a higher EBITDA multiple (23x vs. 20x) and considers a DCF analysis. Despite our downgrade that implies shares are now fairly valued, we continue to believe MDSO is the best positioned e-Clinical company and would consider resorting to a more constructive posture on pull-backs."

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 $57.54 yesterday.

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