Deutsche Bank Reiterates On Medtronic And Covidien Amid Acquisition Proposal
In a note released Tuesday morning, Deutsche Bank analyst Kristen Stewart reiterated a Buy rating on both Medtronic (NYSE: MDT) and Covidien plc (NYSE: COV) and raised her price targets from $74.00 to $85.00 and from $93.00 to $114.00, respectively.
The change in price target comes amid a proposed acquisition of Covidien by Medtronic, which Stewart is saying has a "high likelihood" of closing.
Stewart wrote, "We believe the whole is greater than the sum-of-the-parts. Medtronic plc will be a stronger, better positioned company and a more attractive investment for investors."
In terms of synergies, Stewart noted that she believes the target cost synergy of at least $850 million is "just that (at least)" and said that, although management has not made any projections for revenue synergies, she believes there will be such synergies in both the near- and long-term.
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