Wells Fargo downgrades Medtronic stock

According to reports, Wells Fargo downgraded Medtronic’s (NYSE:MDT) stock after the company received an FDA warning letter.

Yesterday, the company confirmed that it received an FDA warning letter after an inspection of its Diabetes Business, with the regulatory body reporting inadequacy of specific medical device quality system requirements at the Northridge, California, facility, with the areas of risk assessment, corrective and preventive action, complaint handling, device recalls and the reporting of adverse events all under scrutiny.

Shares of MDT closed yesterday down 6% in total at $104.94 per share on the back of the news around the FDA warning letter.

SeekingAlpha reported today that Wells Fargo had upgraded Medtronic to “Overweight” in June after determining that growth would pick up on the back of the company’s pipeline, but today downgraded the stock to “Equal Weight” following setbacks within that pipeline,…

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