Needham Keeps Hold Rating on Medtronic (MDT) Amid Spin-Off News

Medtronic plc (NYSE:MDT) is one of the 11 Best Foreign Stocks to Buy According to Hedge Funds. On June 6, Needham analysts reiterated a “Hold” rating on Medtronic plc (NYSE:MDT). This decision came after the company announced its plans to spin off its Diabetes business into a separate public company.

The analysts believe this split could be good for both Medtronic plc (NYSE:MDT) and the new Diabetes business.

Needham analysts conducted a sum-of-parts analysis, looking at Medtronic plc (NYSE:MDT) without the Diabetes business and the Diabetes business as a separate entity. The firm’s base case scenario suggests that the combined value of the two companies would be about $93 per current Medtronic plc (NYSE:MDT) share.

The analysts believe that while the spin-off might not unlock significant value right away, it has the potential to improve shareholder value in the long term.

This strategic move by Medtronic plc (NYSE:MDT) is seen as a way to improve its business structure. The company is looking to focus on its core operations and boost overall performance.

Medtronic plc (NYSE:MDT) is one of the largest medical device companies in the world. The company is headquartered in Galway, Ireland, and its technologies and therapies include cardiac devices, surgical robotics, insulin pumps, surgical tools, and patient monitoring systems.

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Disclosure: None. This article is originally published at Insider Monkey.