Citi Cuts Medtronic (MDT) Target, Stifel Lowers Outlook after MiniMed IPO

Medtronic plc (NYSE:MDT) is included among the 15 Best Cheap Dividend Stocks to Buy.

Citi Cuts Medtronic (MDT) Target, Stifel Lowers Outlook after MiniMed IPO

On April 7, Citi analyst Joanne Wuensch lowered the firm’s price target on Medtronic plc (NYSE:MDT) to $110 from $117 and kept a Buy rating. The update came as part of a Q1 preview for the medical technology group. The analyst said the “walls of worry are high” heading into earnings, with the sector seeing notable multiple compression. Citi also removed iRhythm and Medtronic from its list of top picks. The firm now favors Edwards Lifesciences and Intuitive Surgical.

On April 6, Stifel lowered its price target on Medtronic to $95 from $105 and maintained a Hold rating. The firm updated its model following the March 9 completion of Medtronic’s Diabetes business IPO, now called “MiniMed” (MMED). Medtronic said MiniMed will remain a consolidated subsidiary for about six months after the IPO, until the full separation is completed. During this transition period, Stifel continues to model the full Diabetes business revenue. It adjusts for the 10% non-controlling interest that Medtronic sold in the IPO. Management expects the IPO to dilute EPS by 1c to 2c per month until the separation is finalized.

Medtronic plc (NYSE:MDT) is an Ireland-based healthcare technology company. Its products are organized across four main segments: Cardiovascular, Neuroscience, Medical Surgical, and Diabetes.

While we acknowledge the risk and potential of MDT as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than MDT and that has 10,000% upside potential, check out our report about this cheapest AI stock.

READ NEXT: 15 Blue Chip Stocks with Highest Dividends and 13 Bank Stocks with Highest Dividends

Disclosure: None. Follow Insider Monkey on Google News.