UPDATE: Stifel Nicolaus Initiates Medtronic at Hold on Valuation

Stifel Nicolaus initiated coverage on Medtronic MDT with a Hold rating. Stifel Nicolaus commented, "We are initiating coverage of Medtronic, Inc. (MDT) with a Hold rating on the shares. Fair-to-reasonable valuation for the stock and lack of dramatic upside drivers keep us on the sidelines for the moment. With approximately 50% of Medtronic's business still in pressured "no growth" markets (Cardiac Rhythm Management and Spine) and limited room for further operating margin expansion, we suspect Medtronic's 10.8x forward P/E multiple is unlikely to expand significantly on a relative basis. With MDT shares already trading at the high end of the industry peer group on an EV/EBITDA basis, we prefer to wait for a better entry point on the shares." Medtronic closed at $41.10 on Monday.