Needham Believes MDT Won’t Stop Here

By George MacDonald

Needham analyst Michael Matson reiterated a Buy rating on Medtronic (NYSE: MDT) yesterday and set a price target of $90. The company’s shares closed yesterday at $76.30, close to its 52-week high of $78.13.

Matson said, “Results from MDT’s FIRE AND ICE trial were presented at the American College of Cardiology (ACC) meeting this morning. The trial showed that ablation to treat atrial fibrillation (AF) with MDT’s Arctic Front CryoAblation catheter was non-inferior to ablation with JNJ’s THERMOCOOL RF ablation catheter. But a pre- specified superiority test failed to show a significant difference between the treatment groups. We don’t expect the results to drive faster growth for MDT’s AF business (and slower growth for JNJ or STJ’s AF businesses) since we don’t think that the data is compelling enough to cause RF-trained physicians to switch to cryoablation.”

Medtronic has an analyst consensus of Strong Buy, with a price target consensus of $84.67.

Medtronic`s market cap is currently $105.6B and has a P/E ratio of 53.1. The company has a book value ratio of 2.7%.

According to TipRanks.com, Matson is a 1-star analyst with an average return of -1.0% and a 57.1% success rate. Matson covers the Healthcare sector, focusing on stocks such as Boston Scientific Corp., Cardiovascular Systems, and Zimmer Biomet Holdings.