Medtronic Upgraded to “Outperform” at Wells Fargo (MDT)

By
A A A
Share |

Medical device maker Medtronic, Inc. ( MDT ) on Monday caught a big upgrade from analysts at Wells Fargo.

The firm said it boosted its rating on MDT from "Market Perform" to "Outperform" and raised its valuation range from $40-42 to $47-48. That new range implies a potential 21% upside to the stock's Friday closing price of $39.67.

A Wells Fargo analyst commented, "We Believe the relatively large valuation gap with its peers will narrow over the next 6-12 months because (1) MDT's six recently launched products will accelerate its organic growth rate to 4.5% in FY2012 from 1.1% in FY2011; (2) the announcement of the new CEO over the next month or so will provide clarity for investors which will lead to incremental buyers of MDT shares; and (3) we are convinced that MDT's Ardian for resistant hypertension represents a multibillion dollar opportunity that is not priced in yet. We are raising our FY2012 sales estimate by $31MM to $16.784B and we are raising our FY2012 EPS stimate by $0.01 to $3.63."

Medtronic shares were mostly flat in premarket trading Monday.

The Bottom Line
Shares of Medtronic ( MDT ) have a 2.27% dividend yield, based on Friday's closing stock price of $39.67. The stock has technical support in the $34-$36 price area. If the shares can firm up, we see overhead resistance around the $41-$42 price levels.

Medtronic, Inc. ( MDT ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

Created by Dividend.com


This article appears in: Investing , Stocks

Referenced Stocks: MDT

Dividend.com

Dividend.com

More from Dividend.com:

Related Videos

Stocks

Referenced

100%

Most Active by Volume

55,414,702
  • $15.38 ▼ 0.39%
38,503,210
  • $66.34 ▲ 2.26%
36,466,704
  • $8.36 ▼ 9.52%
35,253,294
  • $26.55 ▲ 1.34%
32,752,347
  • $6.55 ▲ 1.87%
31,778,001
  • $95.22 ▲ 0.19%
28,396,556
  • $51.49 ▼ 0.62%
23,800,987
  • $42.09 ▲ 0.97%
As of 7/11/2014, 04:03 PM