NEW YORK (TheStreet) -- Shares of Medtronic (MDT - Get Report) are higher by 0.04 to $83.35 early Tuesday morning, after the company announced yesterday that it is developing a robotic surgical system to be introduced by 2019, Reuters reported.
The robot will generate "material revenue" for the Dublin-based medical technology and services company when it is launched sometime before the 2019 fiscal year, Medtronic's Bryan Hanson, head of the minimally invasive therapies group, told Reuters.
In robotic-assisted surgery, the surgeon guides the robot's hands to perform the procedure. The robot can make smaller incisions than a human's hands.
Medtronic's robot will compete against other companies such as Intuitive Surgical (ISRG) and its da Vinci system, which operates the only robot to perform abdominal surgery. Also, Johnson & Johnson (JNJ) and Alphabet's (GOOGL) Google launched a startup company Verb Surgical to build a surgical robot.
In addition, Barclays raised its price target on the stock to $93 from $90 and reiterated its "overweight" rating, after attending the company's analysts meeting on Monday.
"The fundamental environment, details in the operational plan and MDT's execution and pipeline give us more confidence in the potential for upside to our forecasts," Barclays analysts said in an investor note.
Separately, TheStreet Ratings rated Medtronic as a "buy" with a score of A-.
This is based on the convergence of positive investment measures. The company's strengths can be seen in multiple areas, such as its compelling growth in net income, revenue growth, largely solid financial position with reasonable debt levels by most measures, solid stock price performance and reasonable valuation levels.
TheStreet Ratings feel its strengths outweigh the fact that the company shows weak operating cash flow.
You can view the full analysis from the report here: MDT
TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.