Wells Fargo Upgrades Medtronic, Inc. (MDT) to Outperform; Valuation Gap To Narrow On Growth Acceleration, New CEO & Ardian

Wells Fargo upgraded Medtronic, Inc. (NYSE: MDT) from Market Perform to Outperform. Valuation range to $47-48 from $40-42.

Wells analyst says, "We Believe the relatively large valuation gap with its peers will narrow over the next 6-12 months because (1) MDT’s six recently launched products will accelerate its organic growth rate to 4.5% in FY2012 from 1.1% in FY2011; (2) the announcement of the new CEO over the next month or so will provide clarity for investors which will lead to incremental buyers of MDT shares; and (3) we are convinced that MDT’s Ardian for resistant hypertension represents a multibillion dollar opportunity that is not priced in yet. We are raising our FY2012 sales estimate by $31MM to $16.784B and we are raising our FY2012 EPS stimate by $0.01 to $3.63."

For more ratings news on Medtronic, Inc. click here and for the rating history of Medtronic, Inc. click here.

Shares of Medtronic, Inc. closed at $39.67 yesterday.

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