JP Morgan upgraded Medtronic (MDT ) to buy.
Analyst Michael Weinstein says fourth quarter results were strong as the top line exceeded expectations across each division, with the most impressive results seen in Cardiac Rhythm Management (CRM). S&P views Medtronic as a major beneficiary of the re-accelerating market for implantable CRM devices. He says his above consensus forecast calls for 14-15% growth for 2002, following less than 8% growth in 2001.
He notes driving growth is the rejuvenated ICD market, and robust early adoption of resynchronization devices for heart failure. Weinstein bumped his $1.41 fiscal 2003 (April) earnings per share estimate to $1.43, and upped the $1.65 fiscal 2004 to $1.67. He has a $57 12-month target.