NEW YORK (TheStreet) -- Shares of Medtronic Inc. (MDT) are flat in pre-market trade as the heart rhythm devices maker evaluates a takeover of U.K.-based Smith & Nephew Plc (SNN) that could see the U.S. company move its tax domicile overseas, sources told Bloomberg.
Shares of Smith & Nephew are down -4.65 to $92.75 in pre-market trade.
Smith & Nephew has a market value of about $15.9 billion and is aware of Medtronic's interest as are investment banks, sources added. Medtronic's preparations for a bid are at an early stage and no offer is imminent, the sources said.
TheStreet Ratings team rates MEDTRONIC INC as a Buy with a ratings score of A. TheStreet Ratings Team has this to say about their recommendation:
"We rate MEDTRONIC INC (MDT) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, reasonable valuation levels, good cash flow from operations, largely solid financial position with reasonable debt levels by most measures and solid stock price performance. We feel these strengths outweigh the fact that the company has had sub par growth in net income."
Highlights from the analysis by TheStreet Ratings Team goes as follows: