Oppenheimer Raises Price Target on Medtronic (MDT) to $94 Following EPS Beat

August 26, 2016 9:44 AM EDT
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Price: $72.03 -0.11%

Rating Summary:
    20 Buy, 16 Hold, 1 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 20 | Down: 30 | New: 24
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Oppenheimer reiterated an Outperform rating on Medtronic, Inc. (NYSE: MDT), and raised the price target to $94.00 (from $90.00), following the company's 1Q earnings report. MDT reported a $0.02 EPS beat, driven by a slightly lower interest expense and tax rate.

Analyst Steven Lichtman commented, "MDT delivered an in-line F1Q operationally with EPS coming in $0.02 ahead on slightly lower interest expense and tax rate. The underlying story remained the same as new product launches, emerging market expansion and hospital service offerings drove ~5%/15% constant currency constant week (CCCW) sales/EPS growth in F1Q. MDT reiterated FY17 guidance, including 5-6% CCCW sales growth and EPS of $4.60-$4.70 (12-16% CCCW). Covidien synergies are on target, and free cash flow is on track to accelerate to $6.5-7.0B in FY17. We continue to see cash flow flexibility providing upside opportunities ahead in the form of accelerated buybacks, solid dividend growth and tuck-in M&A (including the recent Heartware acquisition). MDT’s scale is another key positive in today's environment."

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 $85.39 yesterday.



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