) to equal-weight.
Analyst Glenn Reicin says the medical products maker's third quarter revenues of $1.913 billion missed his estimates by just $2 million. He says one could argue that Medtronic deserves the extremely high valuation given the overall earnings environment. However, Reicin thinks the odds of continued multiple expansion is probably not that great near term.
He notes this is especially true when same-store growth is expected to moderate slightly later in the year. Reicin says given the limited upside, he thinks the equal-weight rating is appropriate. He sees $1.41 fiscal 2003 (April) earnings per share, and $1.62 for fiscal 2004. He has a $47 target.