Travis Steed, an analyst from Bank of America Securities, reiterated the Buy rating on Medtronic (MDT – Research Report). The associated price target remains the same with $100.00.
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Travis Steed’s rating is based on Medtronic’s strong performance in key areas despite some setbacks. The company demonstrated robust growth in its Electrophysiology division with a 22% increase, and improvements in supply chain efficiency and margin expansion. Additionally, earnings per share grew by 7%, and foreign exchange impacts were less severe than anticipated, which supports a positive outlook for FY26.
Although there were challenges, such as a one-time issue affecting the surgery business and some underperformance in other areas, Steed believes these are outweighed by the potential revenue upsides projected for FY26-27. The pipeline is deemed sufficient to counteract any future negative surprises, with expectations of $1.2 billion in revenue gains above market estimates. Future developments, such as the RDN initiative, are expected to contribute to sustained revenue growth and improved margins, reinforcing the Buy rating.
In another report released today, Barclays also maintained a Buy rating on the stock with a $109.00 price target.
Based on the recent corporate insider activity of 62 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of MDT in relation to earlier this year.