Credit Suisse downgraded Medivation stock to "neutral" from "outperform" this morning. The firm also upped its price target on shares to $81.50 from $72, which matches the offer price.
"Our CS Special Situations Desk expects the deal to close with high probability, and we see little likelihood of a competitive bid following the lengthy auction process. Furthermore, we see little likelihood of anti-trust concerns given no overlap in the mechanisms of action of portfolio products," the firm wrote in an analyst note.
Pfizer's offer price of $81.50 per share is well above the high $60s to low $70s projected by Wall Street, Credit Suisse noted.
Additionally, Stifel cut its rating on Medivation to "hold" from "buy." Brean Capital also reduced its rating to "hold" from "buy," while SunTrust lowered its rating to "neutral" from "buy," the Fly reports.
Shares of Medivation were edging lower in pre-market trading on Tuesday, while shares of Pfizer were higher.
Separately, TheStreet Ratings Team has a "Hold" rating with a score of C on Medivation stock.
The primary factors that have impacted the rating are mixed. The company's strengths can be seen in multiple areas, such as its solid stock price performance, robust revenue growth and largely solid financial position with reasonable debt levels by most measures.
But the team also finds weaknesses including feeble growth in the company's earnings per share, deteriorating net income and disappointing return on equity.
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
You can view the full analysis from the report here: MDVN