UPDATE: Piper Jaffray Raises PT to $48 on Medtronic on Solid Quarter, Conservative Guidance

Piper Jaffray reiterated its Overweight rating on Medtronic

and raised its price target from $45 to $48. Piper Jaffray noted, "While FY13 revenue guidance increased from 2%-4% to 3%-4%, guidance assumes a deceleration in sequential 2H13 growth (vs. 5% cc growth in F1H13). We view this as conservatism on the part of MDT's CEO, and believe this is appropriate given macro headwinds and product specific challenges. GMs were softer than expected, despite strong revenues, perpetuating the discussion on the leverage sustainability, especially given MDT's focus on EM growth. However, we note that the lower end of guidance did come up, and appreciate the renewed focus on meeting expectations. Overall, we view the results as positive." Medtronic closed at $41.81 on Tuesday.