Medtronic (MDT) Upgraded As It Is Too Cheap Relative To Peers
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Price: $51.53 --0%
Rating Summary:
8 Buy, 18 Hold, 1 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 14 | Down: 14 | New: 21
Rating Summary:
8 Buy, 18 Hold, 1 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 14 | Down: 14 | New: 21
Trade MDT Now!
As noted earlier, UBS upgraded Medtronic, Inc. (NYSE: MDT) from Neutral to Buy today and raised their price target form $37 to $44, suggesting 19 percent upside from yesterday's close.
The firm notes that the stock trades at a 13 percent discount on a forward P/E to peers, which in their opinion is not justified.
UBS analyst Bruce Nudell said the valuation discount is likely related to lack of investor confidence as management was slow in recognize declining growth and market share losses in key CRM/spine segments, but this should change. "Increased confidence in operating performance should drive a valuation more in line with peers," Nudell states.
Shares of Medtronic are up 0.3 percent to $37.03 in early action Wednesday.
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The firm notes that the stock trades at a 13 percent discount on a forward P/E to peers, which in their opinion is not justified.
UBS analyst Bruce Nudell said the valuation discount is likely related to lack of investor confidence as management was slow in recognize declining growth and market share losses in key CRM/spine segments, but this should change. "Increased confidence in operating performance should drive a valuation more in line with peers," Nudell states.
Shares of Medtronic are up 0.3 percent to $37.03 in early action Wednesday.
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