UPDATE: Citigroup Raises Target on Medtronic to $48
Citigroup lowers its price target on Medtronic (NYSE: MDT) to $48, up $3, while reiterating its Buy rating as it trims estimates on the company, reflecting the belief that the med tech mart experienced a difficult January.
Citigroup says, "We are lowering our F3Q12 sales forecast to $4.05B (+2.2%) which represents organic growth of 0.8%. Our sense is the ICD and Spine markets worsened modestly in C4Q11, but more so when looked at from November to January and market trends more than offset the benefit of share gains in US ICDs. We are now looking for F3Q ICD sales of $695MM (-6% cc) and Spinal sales of $803MM (-7%) which are roughly $5MM and $15MM below the Street. Our overall sales forecast of $4.05B appears to be roughly $5-10MM below the Street when Physio Control is accounted for in all estimates."
MDT closed at $39.93 a share on Friday.
