Medtronic's (MDT) two largest segments – CRDM and Spinal have been witnessing several challenges over the past few quarters.
Lower procedure volume and pricing pressure continues to bother the company. Although the company expects the situation to improve with new product launches, any imminent benefit can be ruled out at present. Concerns regarding overutilization of stents and issues with its bone growth protein rhBMP-2 are also haunting Medtronic.
Additionally, uncertainty hovers around the course of action to be adopted by the new CEO. Given these issues, we downgrade the stock to
Underperform until any further clarity is available regarding the growth profile of its core segments.
MEDTRONIC (MDT): Free Stock Analysis Report
Get all Zacks Research Reports and be alerted to fast-breaking buy and sell opportunities every trading day.
Be the first to comment