UPDATE: JPMorgan Downgrades Medtronic, Inc. (MDT) to Neutral, Removes from Analyst Focus List
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JPMorgan analyst Robbie Marcus downgraded Medtronic, Inc. (NYSE: MDT) from Overweight to Neutral with a price target of $105.00 (from $130.00).
The analyst comments "Following roadblocks to several key pipeline assets in 2021, we’re downgrading Medtronic shares to Neutral from Overweight. With a new CEO, revamped operating model, and several exciting pipeline products in the works, we like the changes put in place over the last several quarters and think management has done a good job of evolving the thesis toward a pipeline driven growth story. However, with setbacks to the company’s most significant pipeline products, renal denervation, 780G, and Hugo, we think management has work to do to resolve these issues and prove to investors it can execute this turnaround story. We’re lowering our forecasts for Diabetes and assume a delayed 780G launch, plus reduce renal denervation sales further, but still think ~5% organic revenue growth and EPS growth of ~8% is possible, but view a lower multiple as appropriate until management can more convincingly prove to investors that Medtronic’s pipeline and operating model can consistently deliver results. With all that taken into account, we view shares as fairly valued here and now rate MDT shares Neutral, and we are removing MDT from our Analyst Focus List."
Shares of Medtronic, Inc. closed at $102.21 yesterday.
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Create E-mail Alert Related CategoriesAnalyst Comments, Analyst PT Change, Downgrades
Related EntitiesJPMorgan, Analyst Focus List
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