Needham Reiterates a Buy Rating on Medtronic

By Ryan Adsit

In a report released today, Michael Matson from Needham reiterated a Buy rating on Medtronic (NYSE: MDT), with a price target of $84. The company’s shares opened today at $73.60, close to its 52-week low of $71.03.

Matson said:

“F2Q17 revenue missed and EPS beat consensus (due to a tax benefit) and MDT lowered its FY17 guidance. Organic selling-day adjusted revenue growth slowed to 2.2% CC vs. 5.3% CC in F1Q17 with new products adding ~195 bps, emerging markets adding ~120 bps, and services & solutions added ~20 bps. The revenue shortfall was mainly due to a lull in new product launches in certain businesses including Cardiac & Vascular and Diabetes. Operating margin was better than expected and up 150 bps Y/Y CC.”

According to, Matson is a top 100 analyst with an average return of 10.8% and a 67.3% success rate. Matson covers the Healthcare sector, focusing on stocks such as Boston Scientific Corp., Zimmer Biomet Holdings, and Cardiovascular Systems.

Currently, the analyst consensus on Medtronic is Strong Buy and the average price target is $96.14, representing a 30.6% upside.

In a report issued on November 9, Jefferies also reiterated a Buy rating on the stock with a $100 price target.

The company has a one year high of $89.27 and a one year low of $71.03. Currently, Medtronic has an average volume of 4.74M.