Medtronic assumed with a Sell at UBS

UBS assumed coverage of Medtronic with a Sell rating and $79 price target as part of a sector note on U.S. Medical Supplies and Devices. The firm lacks conviction that Medtronic can return to sustainable mid-single-digit top-line growth and drive consistent operating margin upside, the analyst tells investors in a research note. Potential resolution of the outstanding Diabetes Warning Letter could be a positive catalyst for the stock, but UBS sees Medtronic at best stemming recent share loss in Diabetes even with new product launches.