Medical device maker Medtronic, Inc. (
) on Friday saw its coverage started with a "Buy" rating by
analysts at Deutsche Bank.
The firm also set a $43 price target on MDT shares, which
represents an expected 31% upside to the stock's Thursday closing
price of $32.71.
A Deutsche Bank analyst commented, "We were disappointed by
Medtronic's most recent quarter, however, we believe the current
valuation is an opportunity for the patient investor. Medtronic is
back in the penalty box and is a "show me" story. We believe the
new products that Medtronic will have to show, which admittedly are
taking longer to come to market than we'd like, are worth waiting
Medtronic shares were mostly flat in premarket trading
The Bottom Line
We have been avoiding the stock since our early June 2008 coverage
began, and the stock was trading at $50.37. The company has a 2.75%
dividend yield, based on last night's closing stock price of
$32.71. The stock has technical support in the $30 price area. If
the shares can firm up, we see overhead resistance around the
$36-$38 price levels. We would remain on the sidelines for now.
Medtronic, Inc. (
) is not recommended at this time, holding a Dividend.com DARS™
Rating of 3.2 out of 5 stars.
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