J.P. Morgan Neutral On Medtronic (MDT)

J.P. Morgan Chase & Co. has a Neutral rating and a $41 price target on shares of Medtronic MDT. In a note to investors, J.P. Morgan writes, "Much of the past five months was spent speculating on (a) just who would assume the reins at Medtronic and (b) what that would mean for the future of the company. But, behind the scenes, fundamentals remain challenged. That's why over the last few months, despite the transition at CEO, management and the board (a) laid off 4-5% of the workforce, (b) consolidated the cardiovascular sales organizations, and (c) unilaterally ended key GPO contracts with Novation and Premier. These actions were taken not out of confidence or comfort in the fundamentals, in our view, but in an effort to rethink business models in the face of increasing challenges and slower growth." Shares of MDT lost 60 cents yesterday to close at $42.05, a loss of 1.4%.