Oppenheimer Reiterating Outperform On Medtronic

Oppenheimer & Co. has an Outperform rating and a $48 price target on shares of Medtronic MDT. In a note to clients, Oppenheimer & Co. writes, "Thursday, MDT announced all-cash acquisitions of privately-held Salient Technologies and PEAK Surgical for $525M and $120M, respectively. The acquisitions provide MDT with a broad portfolio of products in the advanced energy surgical tools market (with benefits in precision and blood control) while leveraging its $1B/year Surgical Tech business. We see the two tuck-ins in Surgical Tech, one of MDT's strongest performing segments in FY11 (+8%), as continued welcome diversification from the headwinds in ICDs/spine. The $120M in added annualized sales aren't highly impactful near term, but are growing 20-30% with potential broader applications. Separately, Medicare coverage expansion was finalized for MRIs for those with pacemakers FDA approved for use in MRIs (MDT's Revo)." Shares of MDT gained 12 cents yesterday to close at $38.20, a gain of 0.32%.