NEW YORK (TheStreet) -- Medtronic Inc. (MDT - Get Report) stock has received several upgrades from analyst firms Tuesday, following its proposed cash-and-stock deal to purchase Covidien (COV) a day earlier.
Morgan Stanley upgraded to "overweight" from "equal-weight" with a $73 price target, noting the acquisition will drive big returns.
RBC Capital upgraded to "outperform" from "sector perform" with a $73 price target. Analysts said the deal makes both financial and strategic sense.
BTIG upgraded to "buy" from "neutral" with a $73 price target, arguing Covidien is a premium asset and a good use of the company's cash.
Credit Suisse upgraded to "outperform" from "neutral" with a $70 price target. Analysts said the purchase should add to earnings.
Medtronic shares stumbled following the announcement, closing Monday's session 1.1% lower to $60.03 on heavy trading volume. The company said it had agreed to purchase Covidien for $42.9 billion.
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