First Albany Raises Price Target for Medtronic
Medtronic (MDT ) increased its fiscal year 2006 earnings per share guidance. First Albany kept a strong buy opinion, and raised its price target to $66.
Analyst Jason Mills says he came away from the medical device maker's investor meeting even more bullish with respect to prospects for the company and stock. He says EPS guidance for fiscal years 2006-2008 (April) were materially increased, driven by a lower tax rate of 26%. He believes margin expansion, robust new product pipeline, competitively advantaged positions in tech, and sales distribution for CRM (Cardiac Rhythm Mgmt) is also aiding guidance.
Mills raised fiscal year 2006 EPS estimate to $2.23 from $2.15 on slightly higher revenue of $11.5 billion; fiscal year 2007 EPS was raised to $2.48 from $2.56 on revenue of $13.2 billion.