Medtronic Revenue Bruised by COVID-19 Measures

Wells Fargo cut its price target in response

Digital Content Manager
Apr 22, 2020 at 9:45 AM
facebook X logo linkedin

Medical device manufacturer Medtronic PLC (NYSE:MDT) announced last night that its global revenue has taken a hit in recent weeks, while hospitals delay elective procedures utilizing its devices in order to prioritize patients with COVID-19. The firm expects this to significantly impact its upcoming fiscal fourth-quarter results, adding that China's weekly revenue has already dropped 20% to 40% since March 9, and revenue in the U.S. declined roughly 60%. At last check, MDT is down 1.6% to trade at $96.03.

The announcement sparked a price target cut from Wells Fargo to $108 from $130. The majority of analysts, however, are bullish on MDT. Nineteen of the 24 covering the stock call it a "buy" or better, with not a single "sell" to be seen. Plus, coming into today, the consensus 12-month target price of $113.91 is a 16.7% premium to last night's close. 

Options players are also optimistic. In the past 10 days, 8.53 calls have been picked up for every put at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX). This ratio sits in the 81st percentile of its annual range, suggesting a much healthier appetite for bullish bets of late. 

Looking back, MDT has been working at distancing itself from its March 18, three-year low of $72.13 -- up 8% in April -- but ran out of steam just below its 70-day moving average earlier this week. This pressure is keeping Medtronic stock from taking over its year-to-date breakeven, though year-over-year, MDT boasts a roughly 15% gain. 



Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on calls
238.5% GAIN on Oracle calls



Rainmaker Ads CGI