Medtronic Diabetes Unit MiniMed’s IPO Sparks Analyst Debate

MiniMed Group Inc., a maker of diabetes management devices that will be separated from health giant Medtronic Plc, is spurring debate among analysts over whether its growth prospects justify the valuation it’s seeking in an IPO.

The Northridge, California-based company, which is targeting a raise of as much as $784 million in an initial public offering that’s pricing Thursday, plans to expand the reach of its portfolio of insulin pumps and glucose monitoring devices within the global diabetes market, its filings show.

Despite being pitched to investors at a discount to peers, the IPO is seeing price-sensitive orders ...