Report: Medtronic pushes back on Barclays downgrade

Medtronic (NYSE:MDT) is pushing back against a note from a Barclay’s analyst which downgraded their price target of the company’s shares from $113 to $104 on concerns related to overall performance and the performance of certain cardiovascular divisions, according to a CNBC report.

In their research note, Barclays analyst Kristen Stewart reiterated an overweight rating and dropped their price target for the Fridley, Minn.-based company. The decision was based on updated guidance which indicated full-year sales growth of between 5% and 5.5% versus the high end of their expectations, along with slowed growth in the company’s cardiac & vascular group, according to a Street Insider report.

“Medtronic is experiencing softness in its left ventricular assist device business as well as cautiousness around drug coated balloons following a journal article that raised some questions on safety (of DCBS in general). Key risks include new product approvals, adverse FX rates (stronger US dollar), competitive product launches, regulatory actions, changes in reimbursement, successful integration, and dilutive M&A,” Stewart wrote in the note, according to the Street report.

CEO Omar Ishrak fought back against the claims, stating to CNBC’s Jim Cramer that the company has “the strongest pipeline that we’ve ever had,” according to CNBC’s report.

“We innovate, we create new markets and we disrupt our own market. We think these are game changers for healthcare,” Ishrak said, according to the CNBC report.

Ishrak went on to say that he did not believe the note from Barclays analyst Stewart accurately reflected his comments when he updated on the company’s guidance, according to the report.

Shares in the company closed down 6.5% yesterday, closing at $82.45. The company’s shares have stayed more steady today, up 0.5% at $82.88 as of 3:40 p.m EST.

Last month, Medtronic said that it closed the $1.7 billion acquisition of Mazor Robotics (NSDQ:MZOR) and its robot-assisted surgery platform, capping the buyout with the announcement that their first jointly produced product won an FDA nod.

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