Medtronic’s (MDT) story is improving — product approvals, launches and a renewed focus on operating margins should drive healthy near-term earnings growth. While sales growth has been hampered by
weak U.S. end-markets, the company produced solid free cash flow of over $3 billion that can be used for acquisitions.
The company is well on track for achieving goals set by its ONE Medtronic approach. Earnings of 82 cents per share in the last quarter of the fiscal year were in line with the Zacks Consensus Estimate.
Manufacturing efficiencies and low product costs drove margins higher. We rate this stock Outperform with a target price of $42.Zacks Investment Research