Jefferies Raises Price Target on Medtronic (MDT) to $100 Following 1Q Report
Jefferies reiterated a Buy rating on Medtronic, Inc. (NYSE: MDT), and raised the price target to $100.00 (from $93.00), following the company's 1Q earnings report. EPS was reported $0.02 above estimates. FX was only $7mn v. the $25- $75mn guided to and the company missed consensus by about $12mn.
Analyst Raj Denhoy commented, "The one fewer week confounded results in 1Q but sales growth came in at +5.1% and EPS beat by $0.02. Op margins of 26.4% were higher than the 25.7% expectation as the company kept margins flat after adjusting for the extra week, despite absorbing 100bp from FX. Revenue and EPS guidance was maintained. However, with currency now expected to be a positive $300mn, we think that EPS guidance could prove conservative."
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Shares of Medtronic, Inc. closed at $85.39 yesterday.