UPDATE: Oppenheimer Raises PT on Medtronic Following Solid FQ4 Sales

In a report published Wednesday, Oppenheimer analyst Steven Lichtman raised the price target on Medtronic MDT from $52.00 to $57.00, and maintained the Outperform rating.

In the report, Oppenheimer noted, “Solid F4Q sales were highlighted by improved performances from US ICD/spine. Excluding these businesses and U.S. pacemakers, the rest of MDT's portfolio (75% of revs) continued to deliver (+6%). As we expected, MDT set sales growth guidance in FY14 similar to FY13. On the pipeline, transcatheter valves and renal denervation remain on track for FY15, while MDT's 530G pump timing looks pushed out due to FDA observations on insulin pump quality systems. Importantly, MDT is delivering consistently near-term led by an improved cardiovascular franchise, emerging market growth and cost-cutting initiatives. As a result, investor focus continues to shift to expected revenue acceleration in FY15 from the pipeline. Price target ups to $57 from $52 on higher operating estimates/peer multiple expansion.”

Medtronic closed on Tuesday at $52.35.