Piper Jaffray Maintains Overweight on Medtronic

Piper Jaffray is out with its report today on Medtronic MDT, maintaining Overweight. In a note to clients, Piper Jaffray writes, "Growth continued to elude MDT; we see the value thesis of strong global brands, consistent cash flow, and a low multiple, remaining intact. In our view, if the healthcare (equipment) sector continues to outperform the broader S&P index (up 13% vs 5% YTD) then MDT will likely rise with the tide. In the near term, we do not believe MDT can begin to bridge the valuation gap with its peer group until the new CEO lays out his vision – likely not until September (at the earliest). We are maintaining a long term OW rating and will be reviewing our estimates and valuation to incorporate results and outlook." Shares of MDT closed Thursday at $40.88.