J.P. Morgan Maintains Neutral on Medtronic

J.P. Morgan is out with its report today on Medtronic MDT, maintaining Neutral. In a note to clients, J.P. Morgan writes, "Our $41 December 2011 price target values Medtronic at 11.0x our CY12 EPS forecast. This is a modest discount to the company's current NTM multiple of 11.6x, and compares to the large-cap MedTech average of 13.0. We believe that this valuation level is appropriate given the current business challenges the company faces and its long-term growth profile, which we peg at 3-4% and 6-7% on the top and bottom line, respectively. With better upside opportunities elsewhere, we assign MDT shares our Neutral rating." At the time of posting, shares of MDT were trading pre-market at $38.75, down 0.67% from Tuesday's close.