BTIG Affirms Medtronic (MDT) at 'Neutral'; HeartWare (HTWR) Not Seen as Perfect Asset, but Deal Makes Sense

BTIG affirms Medtronic (NYSE: MDT) at Neutral following news that the company would move to acquire HeartWare International, Inc. (Nasdaq: HTWR).

Analyst Sean Lavin commented, This valuation combined with our view that there are limited other players in this space, makes us believe that it is unlikely that there will be another bidder. Additionally, given limited product overlap, we do not anticipate any FTC issues.

Strategically we think LVAD inclusion can only help enhance MDT's bundling portfolio. MDT ownership should help HTWR better access the cardiologist channel and access to capital (i.e. investment in newer technology like MVAD and transcutaneous energy). Additionally, the combination should also help on the manufacturing side and MDT should be able to clear up the FDA warning letter. Finally, we think HTWR shares have also been disproportionately impacted by poor communication with the Street and at the much larger MDT, this issue disappears, the analyst noted.

For an analyst ratings summary and ratings history on Medtronic, Inc. click here. For more ratings news on Medtronic, Inc. click here.

You May Also Be Interested In

• Azul (AZUL) Said in Talks With Gol (GOL) Shareholder for Stock-Based Deal - Bloomberg
• Wells Fargo Reiterates Overweight Rating on Tapestry Inc. (TPR)
• Infosys (INFY) to Acquire in-tech