BofA Securities raised its price target for MiniMed Group to $24.00 from $20.00. The firm maintained its Buy rating on the stock.
Analyst Travis Steed cited the approaching window for Medtronic to exchange its 90% ownership stake in MiniMed. Historical data indicates that similar precedent transactions often result in stock price increases for the spun-off entity both before and after the exchange offer.
Medtronic now has the option to proceed with the exchange depending on market conditions. The move signals a bullish outlook on MiniMed's future performance and product pipeline timing.