Analysts’ recommendations for Medtronic
Let’s take a look at Wall Street analyst recommendations and target prices for Medtronic (MDT) stock over the next year. Based on the recommendations of 27 brokerage firms in a Bloomberg survey, 74% gave Medtronic a “buy,” 26% rated it a “hold,” and none rated it a “sell.” Notably, Medtronic’s 1Q17 revenues failed to meet analysts’ estimates, and the company’s guidance didn’t increase amid high net profits. But no analysts rated the company a “sell,” and the majority of them recommended it as a “buy.”
Investors can get exposure to Medtronic by investing in the SPDR S&P Dividend ETF (SDY). SDY invests 0.80% of its total holdings in MDT.
The table above lists the 13 brokerage firms that provided target prices for Medtronic for the next 12 months. The consensus 12-month target price is $94.4, an ~10.6% return potential. This target compares to a share price of $85.4 on August 25, 2016.
Analysts’ target prices
On August 25, 2016, Oppenheimer & Co gave Medtronic the lowest one-year target price of $90. This target implies an approximate 5.4% return over the next 12 months. Among the large investment banks, J.P. Morgan gave Medtronic a one-year target price of $96, which implies a ~12.4% return potential over the next 12 months. Piper Jaffray gave the stock its highest one-year target price of $104, which implies a return of ~21.8%.
Peers Zimmer-Biomet Holdings (ZBH), Boston Scientific (BSX), and Becton Dickinson (BDX) have average broker target prices of $140.7, $27.1, and $183.5, respectively. These targets imply returns of 8.6%, 13%, and 4.6%, respectively, over the next 12 months.