Medtronic Initiated with a “Buy” Rating at Deutsche Bank (MDT)
Medical device maker Medtronic, Inc. ( MDT ) 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 for."
Medtronic shares were mostly flat in premarket trading Friday.
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. ( MDT ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.2 out of 5 stars.