JPMorgan upgrades Medtronic to Overweight, boosts target to $109
JPMorgan analyst Robert Marcus upgraded Medtronic to Overweight from Neutral and raised his price target for the shares to $109 from $100. The analyst says that over the past year he's seen a "significant turnaround in performance" at Medtronic. Management has delivered four consecutive beat and raise quarters and "materially improved" free cash flow generation, Marcus tells investors in a research note. Over the next 12-18 months, the company can grow at least in line with its end-markets at 5% growth, contends the analyst. Plus, he believes a "number of underappreciated data presentations and transformative new product launches" do not appear to be fully appreciated by the Street. Marcus sees "meaningful upside" to Street estimates and the potential for multiple expansion on sustained execution.