Oppenheimer Gives Earnings Preview On Medtronic; Raises PT To $48

Medtronic's MDT F4Q11 results are due May 24. FY12 guidance will also be provided. Oppenheimer looks for accelerated FY12 sales and EPS growth after a tough FY11 led by several recent key product launches. Sales will also benefit from easier comps and a much stronger FX tailwind based on current rates. Challenges remain: including suppressed US ICD growth and InFuse headwinds. But with MDT's pipeline now delivering, cash flow still strong, expected accelerated growth in FY12 and a new CEO imminent, Oppenheimer is upping its PT from $42 to $48. FY12 should begin to see the fruits of the numerous recently launched "singles/doubles". Key products we've previously detailed include Solera in spine, Arctic Front AF, Revo MRI, Protecta ICD, Endurant AAA, kyphoplasty in Japan. Also underappreciated, are Ardian for hypertension in EU and US Resolute DES toward fiscal year-end. The search for a CEO has taken slightly longer than expected, but Oppenheimer expects it to wrap soon. The length of the process certainly suggests the board is looking outside of the organization/board. The shares are building ahead of an announcement, but Oppenheimer still expects it to be a positive catalyst. MDT closed Friday at $42.69