Medtronic (NYSE:MDT) Given "Outperform" Rating at Royal Bank Of Canada

Key Points

• Royal Bank of Canada reiterated its outperform rating on Medtronic and kept a $118 price target, implying about 45.5% upside from the stock’s current level.
• Medtronic’s latest quarterly results beat expectations, with EPS of $1.55 and revenue of $9.81 billion both topping estimates. Revenue rose 9.9% year over year, and the company also lifted its quarterly dividend to $0.72 per share.
• Despite the bullish note, several analysts have trimmed price targets, and Medtronic’s FY2027 EPS guidance of $5.90–$6.00 came in below consensus. The stock remains broadly favored, though margin pressures and cost headwinds are still a concern.

Medtronic (NYSE:MDT - Get Free Report)'s stock had its "outperform" rating reiterated by equities researchers at Royal Bank Of Canada in a research note issued on Thursday,Benzinga reports. They presently have a $118.00 target price on the medical technology company's stock. Royal Bank Of Canada's price objective would indicate a potential upside of 45.52% from the company's current price.

Several other brokerages have also commented on MDT. BTIG Research set a $90.00 price target on shares of Medtronic in a report on Wednesday. JPMorgan Chase & Co. decreased their price objective on Medtronic from $105.00 to $100.00 and set a "neutral" rating on the stock in a report on Wednesday, February 18th. Weiss Ratings lowered Medtronic from a "hold (c+)" rating to a "hold (c)" rating in a research report on Thursday, May 21st. Wall Street Zen downgraded Medtronic from a "buy" rating to a "hold" rating in a research report on Saturday, April 11th. Finally, Daiwa Securities Group cut their price target on Medtronic from $117.00 to $115.00 and set a "buy" rating on the stock in a research note on Friday, February 27th. Sixteen analysts have rated the stock with a Buy rating and ten have issued a Hold rating to the company's stock. According to MarketBeat, the stock presently has an average rating of "Moderate Buy" and a consensus price target of $100.86.

Medtronic Stock Performance

MDT stock opened at $81.09 on Thursday. Medtronic has a one year low of $73.31 and a one year high of $106.33. The firm has a 50-day simple moving average of $81.67 and a two-hundred day simple moving average of $92.21. The company has a debt-to-equity ratio of 0.57, a quick ratio of 1.87 and a current ratio of 2.54. The firm has a market cap of $104.11 billion, a price-to-earnings ratio of 22.49, a PEG ratio of 1.76 and a beta of 0.58.

Medtronic (NYSE:MDT - Get Free Report) last posted its quarterly earnings data on Wednesday, June 3rd. The medical technology company reported $1.55 EPS for the quarter, topping the consensus estimate of $1.54 by $0.01. The business had revenue of $9.81 billion during the quarter, compared to the consensus estimate of $9.62 billion. Medtronic had a net margin of 13.00% and a return on equity of 14.82%. The business's revenue for the quarter was up 9.9% compared to the same quarter last year. During the same period in the previous year, the firm posted $1.62 earnings per share. Medtronic has set its FY 2027 guidance at 5.900-6.000 EPS. On average, equities analysts forecast that Medtronic will post 5.54 EPS for the current fiscal year.

Hedge Funds Weigh In On Medtronic

Institutional investors have recently made changes to their positions in the stock. Vanguard Group Inc. lifted its stake in shares of Medtronic by 1.5% in the 4th quarter. Vanguard Group Inc. now owns 128,961,343 shares of the medical technology company's stock valued at $12,388,027,000 after purchasing an additional 1,888,381 shares in the last quarter. State Street Corp increased its position in shares of Medtronic by 2.0% in the fourth quarter. State Street Corp now owns 61,660,158 shares of the medical technology company's stock worth $5,966,780,000 after acquiring an additional 1,199,621 shares in the last quarter. JPMorgan Chase & Co. grew its position in shares of Medtronic by 2.7% during the fourth quarter. JPMorgan Chase & Co. now owns 53,616,694 shares of the medical technology company's stock worth $5,150,420,000 after buying an additional 1,419,730 shares in the last quarter. Capital Research Global Investors increased its stake in shares of Medtronic by 12.6% in the fourth quarter. Capital Research Global Investors now owns 34,573,163 shares of the medical technology company's stock worth $3,321,101,000 after buying an additional 3,880,174 shares during the last quarter. Finally, Geode Capital Management LLC raised its holdings in Medtronic by 0.8% in the fourth quarter. Geode Capital Management LLC now owns 27,879,481 shares of the medical technology company's stock valued at $2,665,832,000 after acquiring an additional 231,919 shares in the last quarter. 82.06% of the stock is owned by institutional investors and hedge funds.

Key Headlines Impacting Medtronic

Here are the key news stories impacting Medtronic this week:

• Positive Sentiment: Medtronic reported fiscal Q4 revenue of $9.81 billion and adjusted EPS of $1.55, both ahead of estimates, which reinforced the recent stock move higher.
• Positive Sentiment: Cardiac Ablation Solutions revenue surged 78% globally, helping offset margin pressure and signaling strong demand in a key growth franchise.
• Positive Sentiment: Management lifted its quarterly dividend to $0.72 per share and kept FY2027 growth targets intact, supporting the case for continued operational momentum.
• Positive Sentiment: Medtronic also announced new strategic investments and FDA-related submissions to expand its Hugo robotic-assisted surgery platform, which could add future growth opportunities. Medtronic submits 510(k) filings to expand Hugo robotic-assisted surgery system
• Neutral Sentiment: Several analysts lowered price targets this morning, but most kept constructive ratings such as overweight, outperform, or buy, suggesting valuation concerns rather than a changed bullish thesis.
• Neutral Sentiment: Wells Fargo cut its target to $102 from $114 and Leerink cut to $104 from $117, while Robert W. Baird reduced its target to $85 and kept a neutral rating.
• Negative Sentiment: Medtronic’s FY2027 EPS guidance of $5.90 to $6.00 came in below the consensus estimate, which may temper some of the post-earnings enthusiasm.
• Negative Sentiment: Margins remain a focus as the company flagged tariff and cost headwinds, which could pressure profitability even as sales improve.

Medtronic Company Profile

Medtronic plc is a global medical technology company that develops and manufactures a broad range of therapeutic devices and health care solutions. Headquartered legally in Ireland with principal operational offices in the United States, the company markets products to hospitals, physicians and health systems worldwide and has grown from its founding in 1949 into one of the largest medical-device manufacturers serving global health-care markets.

Medtronic's offerings span several clinical areas, including cardiac rhythm and heart failure (pacemakers, implantable cardioverter‑defibrillators and related cardiac therapies), minimally invasive and surgical technologies (laparoscopic and advanced energy devices, visualization systems and surgical innovations), restorative therapies (spine and orthopedics, neuromodulation and neurovascular treatments) and diabetes management (insulin-delivery systems and glucose monitoring solutions).

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