Market Overview

UPDATE: Citigroup Reiterates Medtronic at Buy Following Kanghui Holdings Deal

Related MDT
Top 4 NYSE Stocks In The Medical Appliances & Equipment Industry With The Highest Revenue
US Stock Futures Climb Ahead Of Fed's Beige Book
IRS, Eh? Tim Hortons Deal Could Lower Burger King's Tax Bill (Fox Business)

Citigroup maintained its Buy rating on Medtronic (NYSE: MDT) as the company announced the acquisition of Kanghui Holdings (NYSE: KH), thus likely ending its current joint venture with Chinese firm Weigao.

Citigroup noted, "KH is expected to generate $65MM in annual sales in 2012 with growth in excess of 20%. Trauma is 60% of sales and spine is around 33%. The sales level is similar to MDT's current run rate of sales from the Weigao JV but has a higher trauma and lower recon mix. MDT has an option to acquire Weigao's 49% stake in the JV by May 2013 for a range of $450-725MM or the JV would expire in January 2014. Since MDT paid more for KH, we assume either the management fit and/or product mix are considered preferable."

Medtronic closed at $43.48 on Thursday.

Latest Ratings for MDT

DateFirmActionFromTo
Sep 2014Sterne AgeeInitiates Coverage onNeutral
Aug 2014CitigroupMaintainsBuy
Aug 2014CitigroupMaintainsBuy

View More Analyst Ratings for MDT
View the Latest Analyst Ratings

Posted-In: CitigroupAnalyst Color News Reiteration M&A Intraday Update Analyst Ratings

 

Related Articles (MDT + KH)

Around the Web, We're Loving...

Partner Network

Get Benzinga's Newsletters