The analyst believes that the stock's decline (-5%) does not provide sufficient potential to return to buy.

Invest Securities reiterates its Neutral opinion on the stock, with a target price of E40.

' It's a pity, as we consider the stock market reaction to Medidata's temporary slowdown to be disproportionate, given that (i) growth in this business is set to return to >+10% from Q4 23, and (ii) management has a track record that argues in its favor, as evidenced by its talk of China in Q1 23, which has been verified in Q2 23' says the analyst firm.

Without the valuation criterion holding us back, we would be positive on the stock in view of (i) the exciting organic outlook for CT and MT and (ii) the additional M&A leverage enabled by the group's total deleveraging (acquisition capacity >5bnE)' adds Invest Securities.

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