Wells Fargo analyst Jamie Stockton downgraded Medidata (MDSO) to Market Perform from Outperform, with a $90 price target. The analyst notes Bloomberg reported over the weekend that Dassault Systemes (DASTY) was in preliminary discussions to acquire the company, which likely drove Monday’s strong move in Medidata’s shares. Given a moderately slowing organic growth rate and a lack of significant insider selling in 2018-2019 by the CEO and President, Medidata pursuing a takeout makes sense, Stockton contends. However, the analyst believes that a deal with Dassault sounds like it could be months away if ever. Further, while an acquirer might be willing to pay a premium for the rich set of clinical trial data Medidata has spent years gathering and curating, he believes this is “a good place to move to the sideline.”
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