Medtronic upgraded to Outperform from Sector Perform at RBC Capital

RBC Capital analyst Shagun Singh upgraded Medtronic to Outperform from Sector Perform with a price target of $105, up from $98. After channel checks and time with management, the firm has a “renewed sense of confidence” in the business fundamentals, and management’s ability to execute, “which was lacking in the past.” Medtronic is trading at the deepest discount to the S&P 500 at 6-times versus its 10-year historic average of 1-times, which is no longer justified, the analyst tells investors in a research note. RBC expects a re-rating in the stock as catalysts take hold, including margin expansion, earnings growth and product catalysts.