Story updated at 10 a.m. to reflect market activity.
Shares of Medtronic fell 0.6% to $65.57 in morning trading.
The analyst firm set a price target of $68 for the medical equipment maker. Medtronic lacks near-term catalysts, according to Sterne Agee analyst Gregory P. Chodaczek.
"We view Medtronic as the most diversified company in the Medical Technology space, with leading products across each of its core business segments," Chodaczek wrote. "With that said, we do not foresee any new individual product launches that will generate significant revenue growth due to the vast scale of the company's product offerings."
Sterne Agee expects Medtronic to report earnings of 96 cents a share in the fiscal second quarter. The analyst firm expects earnings of $4.02 for full year 2015, and $4.36 a share for 2016.
Separately, 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, largely solid financial position with reasonable debt levels by most measures, increase in stock price during the past year and expanding profit margins. We feel these strengths outweigh the fact that the company has had sub par growth in net income."