UPDATE: Credit Suisse Reiterates On Medtronic As Solid F2Q Showcases New Product Strength

Courtesy of Benzinga.

In a report published Wednesday, Credit Suisse analyst Bruce Nudell reiterated an Outperform rating on Medtronic (NYSE: MDT), and raised the price target from $70.00 to $80.00.

In the report, Credit Suisse noted, “MDT reported F2Q15 sales/EPS of $4.37B (5.0% CC)/$0.96vs. our $4.30B (4.6% CC)/$0.96 estimates & consensus of $4.37B (4.1% reported)/$0.96. WW ICD (+$16M), OUS pacers (+$17M), Catheter AF (+$18M), Surgical Tech (+$19M) & more favorable Fx (+$43M) vs. our estimates. COGS/R&D as a % of sales were both above our forecast offset by lower other expenses (+$24M). MDT narrowed its FY15 CC sales growth guidance to the higher end of 4-5% from 3-5% & reiterated $4.00-$4.10 EPS guidance. We’re updating our FY15 MDT sales/EPS estimates to $17.56B (4.9% CC) / $4.05 from $17.56B (4.8%CC)/$4.05 on higher Linq & Other CRM estimates offset by higher assumed Fx headwinds. We’re also raising our DCF-based target price to $80 from $70 on a higher assumed terminal growth rate which implies ~15X P/E on FY17 EPS ex-amortization for MDT & COV combined.”

Medtronic closed on Tuesday at $72.47.

Posted-In: Bruce Nudell Credit SuisseAnalyst Color Price Target Analyst Ratings