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Investing.com - Evercore has added seven life science and diagnostic tools companies to its TAP Outperform list, the firm announced Tuesday. This move aligns with recent market performance data from InvestingPro, which shows several of these companies demonstrating strong fundamentals and growth potential.
The new additions include Agilent Technologies (NYSE:A), Avantor (NYSE:AVTR), Baxter (NYSE:BAX), GE HealthCare (NASDAQ:GEHC), Illumina (NASDAQ:ILMN), Medtronic (NYSE:MDT), and Thermo Fisher Scientific (NYSE:TMO). Notably, Medtronic stands out with a solid 3.24% dividend yield and has maintained dividend payments for 49 consecutive years, according to InvestingPro data. The company’s stock has delivered a 17.88% total return over the past year, with current analysis suggesting it may be slightly undervalued.
Evercore noted that the current environment for MedTech companies appears favorable, with healthy utilization and capital expenditure trends, along with potential benefits from a tariff pause and foreign exchange factors.
For the Life Science Tools sector, the firm highlighted potential positive factors including U.S. academic and government funding pull forward, along with incremental bipartisan support for the National Institutes of Health (NIH).
Evercore also mentioned that stable pharmaceutical conditions, with bio-pharmaceutical services "back on track," should help improve sentiment toward the group.
In other recent news, Medtronic announced the appointment of Dr. Joon Lee, CEO of Emory Healthcare, to its Board of Directors, effective June 2025. This move is part of Medtronic’s ongoing efforts to strengthen its leadership team. Additionally, Medtronic revealed plans to spin off its diabetes business into a separate entity named MiniMed, aiming to streamline its operations. This strategic decision is expected to be completed within 18 months, subject to customary conditions and legal requirements. Meanwhile, RBC Capital reiterated its Outperform rating on Medtronic, highlighting the potential of the company’s renal denervation system as a significant market opportunity. The firm emphasized the importance of reimbursement decisions by the Centers for Medicare & Medicaid Services, which could impact the technology’s market reach. In contrast, Needham analysts maintained a Hold rating on Medtronic stock, noting that the spinoff could eventually enhance shareholder value. Lastly, Evercore ISI suggested that Boston Scientific (NYSE:BSX)’s recent product discontinuation might benefit Medtronic, given the competitive landscape in the medical device industry.
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