Medtronic (MDT) released its 2Q18 earnings results on November 21, 2017. Let’s check out analysts’ recommendations after the announcement. As of November 23, 2017, according to a Reuters survey that includes 23 brokerage firms, around 48% of the analysts provided a “buy” rating for MDT stock, whereas around 52% of analysts recommend a “hold.” None of the analysts rated Medtronic a “sell.”
Rating upgrades and downgrades
After the company’s 2Q18 earnings release, Barclays raised its target price on MDT stock from $90 per share to $94 per share. However, the firm maintained its “overweight” rating on Medtronic. The increase in the target price was triggered by Jefferies’ confidence in Medtronic for a strong 2H18 and fiscal 2019 triggered by strong product cycles and recovery in the company’s diabetes segment performance. Triggered by resilient 2Q18 results posted by Medtronic, Jefferies also raised its price target on MDT stock from $96 per share to $99 per share while maintaining its “buy” rating.
In comparison, peers Stryker (SYK), Abbott Laboratories (ABT), and Zimmer Biomet Holdings (ZBH) have average analyst consensus target prices of $159.3, $61.5, and $130.9, respectively, over the next 12 months. These targets represent potential 12-month returns of 2.9%, 10.2%, and 15.8%, respectively, over the next 12 months.
For dividend-focused exposure to Medtronic, investors can consider investing in one of the major dividend ETFs like the Vanguard Dividend Appreciation ETF (VIG). VIG has approximately 3% of its total holdings in Medtronic.