Needham & Company Raises Price Target on Medtronic (MDT) Following Biennial Investor Day

Needham & Company reiterated a Buy rating on Medtronic, Inc. (NYSE: MDT), and raised the price target to $93.00 (from $90.00), following the company's biennial investor day. MDT reiterated its target of sustainable mid-single digit revenue growth. It expects this to be driven by a combination of new therapies, emerging markets, and services & solutions. The company also expects to increase its operating margin by 500-650 bps constant currency over the next five years.

Analyst Mike Matson commented, "MDT hosted its biennial investor day on Monday in New York City. The meeting featured an overview of MDT's businesses, product pipeline, strategy, and financial targets. We come away from the meeting with more confidence in the sustainability of MDT's revenue growth. But we think that MDT's margin expansion targets appear ambitious, particularly once it exhausts the Covidien synergies starting in FY19. While management points to total returns in the teens, we view this as a bestcase scenario, albeit one that probably isn't priced into MDT shares at their current level. We think that total returns in the 10-12% range are more realistic and enough for us to maintain our Buy rating at MDT's current share price."

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

Shares of Medtronic, Inc. closed at $83.32 yesterday.

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