Medtronic (MDT) is set to release its fiscal 4Q16 results on May 31, 2016. In a Bloomberg survey of 26 brokerage companies on May 26, 2016, about 81% of analysts rated Medtronic as a “buy,” and 19% rated it as a “hold.”
The table above lists the 18 brokerage companies that have provided target prices for Medtronic over the next 12 months. The consensus 12-month target price for Medtronic is $86.8, amounting to a ~7% return potential. Medtronic was trading at $81.1 on May 25, 2016.
As of May 26, 2016, Wedbush Securities gave Medtronic a one-year target price of $79, the company’s lowest target price. This target implies a -2.5% return over the next 12 months. Among the large investment banks, Goldman Sachs gave Medtronic the highest one-year target price of $93, implying a ~14.7% return potential over the next 12 months.
Peers Becton Dickinson (BDX), Abbott Laboratories (ABT), and Thermo Fisher Scientific (TMO) have average broker target prices of $173.7, $47.2, and $164.3, respectively. These figures imply returns of 4%, 22%, and 8.7%, respectively, in the next 12 months.
ETFs with exposure to Medtronic
Investors can get focused exposure to Medtronic by investing in the iShares U.S. Medical Devices ETF (IHI), which has 14.6% of its total holdings in Medtronic. IHI tracks the Dow Jones U.S. Select Medical Equipment Index, which holds companies in the US medical device sector.
The Vanguard Dividend Appreciation ETF (VIG) tracks the NASDAQ US Dividend Achievers Select Index, which is a market-cap-weighted index of US companies that have paid increasing dividends to their shareholders for at least ten years. Medtronic accounts for about 3% of VIG’s total holdings.
Investors can also gain exposure to Medtronic through the iShares S&P 500 Growth ETF (IVW), which has 0.7% of its total holdings in Medtronic.