TD Cowen Reiterates "Buy" Rating for Medtronic (NYSE:MDT)

Key Points

• TD Cowen reiterated a Buy rating on Medtronic and kept a $119 price target, implying about 45% upside from the current share price.
• Medtronic’s stock rose 5.4% to $82.12 after the company reported fiscal Q4 results that beat expectations on both revenue and adjusted EPS.
• Despite the positive earnings report, some analysts cut price targets, and Medtronic’s FY2027 EPS guidance came in below consensus, with margin pressure from tariffs and costs still a concern.

Medtronic (NYSE:MDT - Get Free Report)'s stock had its "buy" rating reissued by investment analysts at TD Cowen in a note issued to investors on Thursday,Benzinga reports. They presently have a $119.00 price target on the medical technology company's stock. TD Cowen's price target would suggest a potential upside of 44.91% from the company's current price.

Several other research analysts have also recently weighed in on MDT. Barclays upped their price objective on Medtronic from $118.00 to $120.00 and gave the stock an "overweight" rating in a research report on Wednesday, April 1st. Mizuho decreased their price target on shares of Medtronic from $120.00 to $100.00 and set an "outperform" rating for the company in a research note on Wednesday. Weiss Ratings lowered shares of Medtronic from a "hold (c+)" rating to a "hold (c)" rating in a research report on Thursday, May 21st. Needham & Company LLC reduced their target price on shares of Medtronic from $120.00 to $101.00 and set a "buy" rating for the company in a report on Wednesday. Finally, Robert W. Baird decreased their target price on shares of Medtronic from $93.00 to $85.00 and set a "neutral" rating for the company in a research report on Thursday. Sixteen investment analysts have rated the stock with a Buy rating and eleven have given a Hold rating to the company. According to MarketBeat.com, Medtronic has a consensus rating of "Moderate Buy" and an average price target of $99.35.

Medtronic Stock Up 5.4%

MDT traded up $4.17 during trading on Thursday, reaching $82.12. The company had a trading volume of 4,221,701 shares, compared to its average volume of 9,080,472. The company has a market cap of $105.43 billion, a P/E ratio of 22.85, a PEG ratio of 1.76 and a beta of 0.58. Medtronic has a 12 month low of $73.31 and a 12 month high of $106.33. The company has a debt-to-equity ratio of 0.57, a current ratio of 2.54 and a quick ratio of 1.87. The business's fifty day moving average price is $81.67 and its 200 day moving average price is $92.21.

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, beating the consensus estimate of $1.54 by $0.01. The business had revenue of $9.81 billion for the quarter, compared to analysts' expectations of $9.62 billion. Medtronic had a net margin of 13.00% and a return on equity of 14.82%. The firm's revenue was up 9.9% compared to the same quarter last year. During the same period in the previous year, the firm posted $1.62 EPS. Medtronic has set its FY 2027 guidance at 5.900-6.000 EPS. Equities analysts anticipate that Medtronic will post 5.54 EPS for the current year.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently made changes to their positions in the business. Brighton Jones LLC boosted its holdings in shares of Medtronic by 1,368.0% during the 4th quarter. Brighton Jones LLC now owns 39,989 shares of the medical technology company's stock worth $3,194,000 after buying an additional 37,265 shares during the period. Sivia Capital Partners LLC raised its holdings in Medtronic by 9.6% in the 2nd quarter. Sivia Capital Partners LLC now owns 4,356 shares of the medical technology company's stock valued at $380,000 after acquiring an additional 381 shares during the period. Jump Financial LLC acquired a new stake in Medtronic during the 2nd quarter worth approximately $299,000. Main Street Financial Solutions LLC lifted its holdings in shares of Medtronic by 28.9% during the second quarter. Main Street Financial Solutions LLC now owns 14,356 shares of the medical technology company's stock worth $1,251,000 after buying an additional 3,218 shares in the last quarter. Finally, HUB Investment Partners LLC increased its position in Medtronic by 21.3% during the second quarter. HUB Investment Partners LLC now owns 19,226 shares of the medical technology company's stock worth $1,676,000 after acquiring an additional 3,376 shares during the period. 82.06% of the stock is currently owned by institutional investors.

Key Stories 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.

About Medtronic

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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