This medtech giant is a solid pick for investors looking for a safe position in the health care sector, and it is a top pick for 2021. Medtronic PLC (NYSE: MDT) develops, manufactures, distributes and sells device-based medical therapies to hospitals, physicians, clinicians and patients worldwide. It operates in four segments: Cardiac and Vascular Group, Minimally Invasive Therapies Group, Restorative Therapies Group and Diabetes Group.
The company announced earlier this summer that Blackstone’s life sciences division would invest $337 million into the research and development of its diabetes device technologies. Under the terms of the agreement, Medtronic will receive funding for four diabetes programs over the next several years. Medtronic’s engineering, clinical and regulatory teams will conduct the development work for the programs.
Top analysts noted recently that Medtronic has among the best outlooks for catalysts over the next few months (March to October) of any large-cap, and some see two to four points of multiple expansion and 20% upside in the stock this year.
Investors receive a 1.95% dividend. The BofA Securities team has set a $150 price target. The posted consensus target is $133.75, and Medtronic stock closed on Thursday at $118.83.
This company has partnered with a top big pharmaceutical company and the data has been very solid. Neurocrine Biosciences Inc. (NASDAQ: NBIX) is focused on developing and commercializing therapies for neurological and endocrine disorders.
The company’s lead asset is Ingrezza, approved for the treatment of tardive dyskinesia. Neurocrine Biosciences receives economics on its out-licensed product Orilissa in endometriosis and Oriahnn in uterine fibroids, and it is commercializing Ongentys for Parkinson’s disease. The company is also developing several pipeline programs in congenital adrenal hyperplasia, epilepsy and psychiatric disorders.
Earlier this month the company reported that the Phase 2 INTERACT study of luvadaxistat (NBI-1065844/TAK-831) did not meet its primary endpoint. Secondary endpoints on cognitive performance were met, and the company plans to work with Takeda on next steps. The analysts noted at the time NSS was not central to the thesis on the stock and reiterated a Buy rating
The BofA Securities price target of $128 is in line with the $128.49 consensus target. Thursday’s final print was $89.77 per share.
These five top stocks are all on the BofA Securities US 1 list of top picks. They all are very prominent in their respective silos in the financial and health care sectors, and all are great second-quarter ideas for growth investors with a little bit of risk tolerance looking to rotate capital.
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