Leerink Partners: 'We expect MDT to trade higher tomorrow'

Leerink Partners analyst Mike Kratky reiterated an Outperform rating and $110.00 price target on Medtronic, Inc. (NYSE: MDT).

The analyst comments "We expect MDT to trade higher tomorrow on the CMS proposed decision memo for renal denervation (RDN) for uncontrolled hypertension. As we highlighted in our note earlier this week (see HERE), we believe this represented an important catalyst for MDT investors. At first glance, today's decision memo seems positive and less restrictive compared to our expectations coming in. Based on our recent MEDACorp KOL discussions, we had expected CMS to restrict initial reimbursement to more uncontrolled, resistant patients initially as a way to control potential costs. However, the proposed reimbursement appears broader than we had expected (details below). From a commercial standpoint, several MEDACorp KOLs recently indicated they expect a deluge of institutions and patients clamoring for RDN once CMS reimbursement goes into effect in October based on the size of this market and their early experience treating patients. Overall, today's news supports our view that the ongoing transformation at the company could create potentially meaningful upside for the stock. As we highlighted in our recent initiation (see HERE), we remain very positive on MDT. Reiterate OP."

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 $89.40 yesterday.

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