Research Analysts’ Recent Ratings Updates for Medtronic (MDT)
Several investment firms have updated their stock ratings and price targets on shares of Medtronic (NYSE: MDT) in the last week:
- Medtronic had its “overweight” rating reaffirmed by analysts at Piper Jaffray.
- Medtronic had its “outperform” rating reaffirmed by analysts at Sanford C. Bernstein. They now have a $46.00 price target on the stock.
- Medtronic had its “buy” rating reaffirmed by analysts at Citigroup. They wrote, “KH is expected to generate $65MM in annual sales in 2012 with growth in excess of 20%. Trauma is 60% of sales and spine is around 33%. The sales level is similar to MDT’s current run rate of sales from the Weigao JV but has a higher trauma and lower recon mix. MDT has an option to acquire Weigao’s 49% stake in the JV by May 2013 for a range of $450-725MM or the JV would expire in January 2014. Since MDT paid more for KH, we assume either the management fit and/or product mix are considered preferable.”
- Medtronic had its “equal weight” rating reaffirmed by analysts at Morgan Stanley. They wrote, “Despite a low near-term ROIC, we think the strategy of purchasing Kanghui is viable as Medtronic is paying up to own its destiny in China, which puts the Weigao JV in question. … Kanghui has 20% of its sales outside of China and provides Medtronic with access to the value segment in emerging/developed markets. Short term, this likely has a nominal impact on incumbent orthopedics players, but longer-term the acquisition could cause increased competition and pricing pressure or strategic shifts at multiple companies including Stryker, Zimmer, Johnson & Johnson, and Biomet.”
- Medtronic had its “outperform” rating reaffirmed by analysts at Wells Fargo & Co..
Shares of Medtronic, Inc. opened at 43.54 on Thursday. Medtronic, Inc. has a one year low of $32.19 and a one year high of $44.04. The company has a market cap of $44.417 billion and a P/E ratio of 12.55.
Medtronic, Inc. (Medtronic) is engaged in the medical technology – alleviating pain, restoring health, and extending life for people with chronic conditions worldwide.