Medtronic (MDT)

Credit Suisse upgrades to outperform from neutral, adds to Focus List; raises price target

Credit Suisse analyst Kristen Stewart said on Nov. 5 that Medtronic's base businesses, particularly cardiac rhythm management and spinal products, are showing signs of stability. Stewart said the company is delivering on its cost savings and operating margin leverage opportunities.

The analyst noted that over the next year and beyond, Medtronic will launch a series of new products across all divisions, most notably within the cardiac rhythm management and diabetes areas, which should accelerate underlying sales growth. She believes the stock's current valuation largely discounts a "worst-case scenario" and raised her $41 price target to $49.