This Analyst Sees 25% Upside in Medtronic

• Medtronic PLC (NYSE: MDT) is down 13 percent over the past month.
• Steven Lichtman at Oppenheimer reiterated the firm's Outperform rating and $86 price target.
• Though there are some currency headwinds, Lichtman said that the firm is eyeing double-digit EPS growth in the next couple years.

Medtronic is trading lower since posting Q1 earnings on Thursday. Traders may be holding on to management noting that Q2 EPS could be down by "a few pennies."

Steven Lichtman dismissed these concerns, noting that Q1 sales and EPS "both came in ahead of consensus, led by solid US growth." Further, growth in China "saw improvement sequentially."

Lichtman also dismissed currency concerns, arguing instead that the second half of FY16 will see "margin expansion" as Covidien synergies "scale-up." The company will also use improved access to cash to "build out the pipeline and continue its top-line momentum."

In total, the firm expects Medtronic to post "double-digit EPS growth" over the next couple years. With an $86 price target, Lichtman sees more than 25 percent upside in the stock in the next year.