GS on MDT 10/4/01
Medtronic, Inc., Abbott Laboratories
EPS (FY Apr): 2002E US$1.22, 2003E US$1.43 Recommended List Medtronic, Inc.
MDT, $44.40
EPS (FY Dec): 2001E US$1.88, 2002E US$2.27 Recommended List Abbott Laboratories
ABT, $51.45
We continue to recommend purchase of Abbott, Baxter, Medtronic, and Stryker shares. We
also find St. Jude shares attractive with a trading buy rating. We expect quarterly results to
generally meet our expectations, as manufacturers of life-saving technologies remain
relatively immune to the economic downturn. In our opinion, there is little impact to the
medical device industry from the unfortunate events of September 11, since the majority
of products are delivered via ground transport. The weakening dollar should also benefit
device companies since significant international exposure is the norm. We believe that
long-term fundamentals remain intact and maintain our positive outlook.
Jack |
