Medical device maker Medtronic, Inc. (
) 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
The Bottom Line
Shares of Medtronic (
) 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. (
) is not recommended at this time, holding a Dividend.com DARS™
Rating of 3.4 out of 5 stars.
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, as well as a detailed explanation of
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