Needham Remains a Buy on Medtronic

By Austin Angelo

In a report released today, Michael Matson from Needham reiterated a Buy rating on Medtronic (NYSE: MDT), with a price target of $95. The company’s shares opened today at $85.58.

Matson noted:

“F4Q17 revenue and EPS beat consensus and initial FY18 guidance was in line with consensus. Organic revenue growth was steady at 4.0% vs. 4.1% in F3Q17 with new products adding ~370 bps, emerging markets adding ~125 bps and services & solutions adding ~15 bps. Operating margin was above consensus and up 10 bps Y/Y (or 40 bps Y/Y CC). MDT’s product cycle remains strong with significant FY18 launches including: the Resolute Onyx DES, MiniMed 670G insulin pump, Signia powered stapler, new LigaSure instruments, Intellis spinal cord stimulator, Evolut PRO TAVR, and MRI CRT-P quadripolar system.”

According to, Matson is a top 100 analyst with an average return of 13.1% and a 68.2% success rate. Matson covers the Healthcare sector, focusing on stocks such as Boston Scientific Corp, Cardiovascular Systems, and Zimmer Biomet Holdings.

Currently, the analyst consensus on Medtronic is Moderate Buy and the average price target is $89.86, representing a 5.0% upside.

In a report issued on May 22, RBC Capital also reiterated a Buy rating on the stock with a $90 price target.

Based on Medtronic’s latest earnings report for the quarter ending January 31, the company posted quarterly revenue of $7.28 billion and quarterly net profit of $821 million. In comparison, last year the company earned revenue of $7.57 billion and had a net profit of $1.1 billion.

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