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How Wall Street Analysts View Medtronic in December

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Recent developments

In November, Medtronic announced that the company would acquire Nutrino Health, a company that specializes in nutrition associated data services, analytics, and technologies. Medtronic’s diabetes segment is expected to improve significantly with the acquisition of Nutrino Health. The acquisition of Nutrino Health will bring together Nutrino Health’s robust food database, expertise in nutrition science and food analysis systems, and Medtronic’s innovative diabetes management resources.

The companies anticipate the acquisition will close by the third quarter of Medtronic’s fiscal 2019, which ends on January 25, 2019.

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Stock performance

On December 10, Medtronic (MDT) stock closed at $95.48, which represents ~1.32% growth from its prior close of $94.24 on December 7, 2018. Medtronic’s stock has risen from $80.75 at the close of market on December 29, 2017, to reach $96.49 at the close of market on December 4, 2018, reflecting ~17% YTD growth.

On December 10, Medtronic stock closed at $95.48, which is ~23% growth from its 52-week low of $76.41 on March 23, 2018. Notably, Medtronic hit its 52-week high of $100.15 on September 26, 2018.

Analyst recommendations

Of the 27 analysts tracking Medtronic in December 2018, six of them recommended a “strong buy,” while nine analysts recommended a “buy” rating. 12 analysts recommended a “hold” rating. On December 11, 2018, Medtronic had a consensus 12-month target price of $104.59, which is a ~9.54% return on investment over the next 12 months.

Peer ratings

Of the 21 analysts tracking Abbott Laboratories (ABT) in December 2018, ~86% of them recommend “buys,” while among the 20 analysts tracking Becton Dickinson (BDX), ~65% of them recommended “buys.”

On December 11, 2018, Abbott Laboratories and Becton Dickinson had consensus 12-month target price of $79.44 and $268.28, respectively, which represents a ~12.01% and ~13.47% return on investment over the next 12 months.

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