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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.

Sanmina-SCI (SANM)

Needham & Co. maintains hold; raises estimates

After Sanmina-SCI posted stronger-than-expected results on Nov. 5, Needham analyst Sean Hannan said the company is beginning to demonstrate that its business is turning a corner and has returned to profitable levels amid a recovering macro environment. He noted that Sanmina's breakeven non-GAAP fourth-quarter earnings on $1.35 billion in revenue topped the recently updated Wall Street consensus of an 11 cents loss per share and $1.26 billion in revenue. He noted that sequential improvements were seen in most categories other than Communications.

Hannan raised his first quarter estimate from a i-cent loss per share to earnings per sgare of 13 cents, and his fiscal 2010 EPS view from 2 cents to 37 cents. However, he maintained his hold rating, as he believes the shares are fully valued.

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