Wedbush Raised Price Target on Medtronic (MDT) Following FY16 Guidance; Maintains Neutral

Wedbush maintains a Neutral rating on Medtronic, Inc. (NYSE: MDT), and raised the price target to $79.00 (from $75.00), following Q4 results and guidance. MDT reported FY4Q15 revenue of $7.3 billion (as preannounced). Reported adjusted EPS of $1.16 was 3c ahead of the upper end of its guidance range. FY16 initial guidance in in line with expectations.

Analyst Tao Levy commented, "Initial FY16 revenue and EPS guidance roughly in line with expectations. Management expects FY2016 revenue growth, on a comparable constant currency basis, to be in a range of 4%-6%. There will be two items which will impact this year’s growth outlook – an extra selling week in F1Q and a worsening FX headwind - which will add 100-150bps to the FY2016 growth outlook and reduce FY2016 revenues by $1.3-$1.5 billion, respectively. Management also issued
FY2016 cash EPS guidance of $4.30-$4.40, which was below consensus of $4.45; however, FX was 10c more negative than the outlook the company previously issued."

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 $76.88 yesterday.

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