Needham & Company Remains Bullish on Medidata Solutions (MDSO) Despite Revenue Shortfall

Needham & Company maintained a Buy rating on Medidata Solutions (NASDAQ: MDSO), and cut the price target to $45.00 (from $65.00), following the company's 4Q earnings report. Despite MDSO's reported revenue shortfall (missed Street estimates by $6MM), Needham would characterize leading indicators as somewhat encouraging. Needham analysts focused on the company's strong bookings growth, which was driven by impressive large deal activity, suggesting competitiveness vis-à-vis Oracle, and the rising strategic nature of the broader Medidata platform proposition.

Analyst Michael Huang commented, "The Q4 report was mixed yet again and unfortunately not clean enough to placate rising and, in our view, overstated concerns plaguing the broader SaaS universe (universe down 29% over the past month vs down ~3.6% for the S&P 500). However, aside from a disappointing revenue shortfall (missed Street estimates by $6MM, which appeared to stem primarily from the delayed timing of a couple mega deal signings), we’d characterize leading indicators as somewhat encouraging on a few important fronts."

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 $32.30 yesterday.

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