Home : Research : Equity Research : U.S. Equity Research : U.S. Equity Research News

U.S. Equity Research News

Share |

Wuensch Upgrades Medtronic (MDT) to OUTPERFORM from MARKET PERFORM

July 12, 2010

Joanne Wuensch, senior research analyst covering the Medical Technology industry, has today upgraded Medtronic (MDT) to an OUTPERFORM rating from MARKET PERFORM.

From Wuensch’s note: “With the publication of our quarterly report, we are upgrading shares of MDT to OUTPERFORM from MARKET PERFORM based on our view that 1) the valuation has become too compelling to ignore (did we mention that it is cheap, trading below 10x 2011 EPS, versus the large-cap medtech group's 13x, or 12x ex-EW); 2) the company's product and geographic breadth provides it levers to pull to manage foreign exchange and pricing; 3) its product pipeline should support 5%-8% top-line growth, and high-single- digit to low-double-digit bottom-line growth rates; and 4) while historically medical technology has been seen as a safe haven, sector concerns have erased that aura, yet Medtronic's product portfolio and financial leverage largely retains it.”

To receive a full copy of the report or for more information, please contact your BMO Capital Markets representative.

<< Previous

Full List of News Items