UPDATE: Wedbush Initiates Coverage on Medtronic with Neutral Rating, $52 PT on Multiple Concerns

In a report published Friday, Wedbush analyst Tao Levy initiated coverage on

with a Neutral rating and $52.00 price target. In the report, Wedbush noted, “Medtronic is the 800-lb. gorilla in the MedTech sector and under new leadership is starting to show signs of improvement, both on its financial results as well as new product development. However, growing competition, limited near-term growth, and an overextended valuation, are keeping us on the sidelines. We would become more constructive on the stock if Medtronic could demonstrate that the strength it reported in its latest quarter is sustainable over a longer period in light of soft end-user markets, more challenging comps, and competitor product launches. We do not expect meaningful contribution from the U.S. launch of Symplicity renal denervation and CoreValve until the FY16 time frame, at the earliest.” Medtronic closed on Thursday at $52.00.