According to an August 25 Reuters survey of 24 brokerage companies, around 54% (or 13) of analysts recommended “buy” for Medtronic (MDT), 46% (or 11) recommended “hold,” and there were no “sell” recommendations.
Analysts’ ratings for Medtronic over the next year are shown in the table above. As of August 25, 2017, the consensus 12-month target price for Medtronic is $91.40, which represents a ~15.4% return based on its closing price of $79.20 on August 24, 2017.
On August 22, 2017, BMO Capital reiterated its “buy” rating for Medtronic, with a target price of $92. Barclays Capital maintained its “overweight” rating on Medtronic stock on August 23, and UBS gave it an “overweight” rating.
In comparison, peers Abbott Laboratories (ABT), BD (BDX), and Stryker (SYK) have average broker target prices of $54.90, $206.50, and $152.10, respectively. These figures imply returns of 10.8%, 4%, and 8.8%, respectively, over the next 12 months.
ETFs with exposure to Medtronic
For focused exposure to Medtronic, investors could consider the iShares US Medical Devices ETF (IHI), which has a 10.5% exposure to Medtronic. IHI tracks the Dow Jones US Select Medical Equipment Index and is one of the biggest US medical device ETFs.
The Vanguard Dividend Appreciation ETF (VIG), a major dividend ETF, has a ~3.1% exposure to MDT. VIG tracks the NASDAQ US Dividend Achievers Select Index, and is a market-cap-weighted index comprising US companies that have paid increasing dividends to their shareholders for at least ten consecutive years. Investors could consider VIG for dividend-focused exposure to Medtronic.