MDSO: Adding Medidata Solutions to Investing Ideas

Takeaway: We are adding Medidata Solutions to Investing Ideas.

NoteThe excerpt below was written earlier today by Hedgeye CEO Keith McCullough. Stay tuned for further updates from our Healthcare sector head Tom Tobin.

 

MDSO: Adding Medidata Solutions to Investing Ideas - 45

 

Having not been the firm that told you to chase those "Dow Bro 18,000" highs...

 

Now we're in a position to signal buy on some of our Best Research Ideas. In addition to HOLX, Medidata (MDSO) is on Tom Tobin's Institutional Healthcare Team's Research list.

 

Medidata Solutions (MDSO) is a cloud-based provider of electronic data capture (EDC) and clinical trial management solutions to the Life Sciences industry.

 

Our screening process positions MDSO based on a composite ranking of under-performance, low sellside rating, and high short interest.  While we continue to hammer out the details of the tail thesis, on a trend duration, we expect revenue and earnings upside.

 

We have identified several Key Drivers that point to a material acceleration in application services revenue growth through 1Q15 (0.95 R^2).  

 

We believe the stock will trade above $65 versus the current price of $47 under our base case scenario, with the potential for higher prices over the next 12-18 months.

 

We will outline the details in a BlackBook presentation on 1/16 at 1 PM ET.

 

Buy red, at the low-end of the risk range - sell green, at the high.

 

KM 


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