Medtronic price target lowered to $95 from $105 at Stifel

Stifel lowered the firm’s price target on Medtronic (MDT) to $95 from $105 and keeps a Hold rating on the shares. The firm is updating its model to incorporate expected transaction-related impacts following the March 9th completion of Medtronic’s Diabetes business IPO, now called “MiniMed” (MMED). Medtronic had indicated that MiniMed will remain a consolidated subsidiary within MDT until the official separation, about six months post-IPO. As such, during this six-month bridge period, Stifel continues to model full MDT Diabetes business revenue, while adjusting for the 10% non-controlling interest Medtronic divested in the IPO. Management expects IPO-related EPS dilution of 1c to 2c per month through the final separation date.