What Analysts Recommend for Medtronic ahead of 3Q18 Earnings


Feb. 24 2018, Updated 3:41 p.m. ET

Analysts’ recommendations

Medtronic (MDT) plans to release its 3Q18 earnings results on February 20, 2018. The company has undertaken some recent management changes, made tuck-in acquisitions, and recuperated from the impact of Hurricanes and its divestiture of Cardinal Health (CAH). In this article, let’s take a look at the latest analyst recommendations on MDT stock ahead of its 3Q18 earnings results.

As of February 13, according to a Reuters survey that included 24 analysts covering MDT stock, about 58% of analysts (14) provided a “buy” or “strong buy” rating. The stock has a “hold” rating from ~42% of analysts (ten). None of the analysts covering MDT stock provided it a “sell” rating.

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Target price

As of February 13, Wall Street analysts’ consensus 12-month target price for Medtronic is $91.98, representing a potential investment return of approximately 14.6% over the next 12 months. On February 12, Medtronic ended trading at a closing price of $80.24 per share.

Medtronic’s peers Becton Dickinson (BDX), Stryker (SYK), and Abbott Laboratories (ABT) have average broker target prices of $241.6, $173.4, and $68.2, respectively. These figures imply returns of 10.4%, 12.9%, and 18.8%, respectively, over the next 12 months.

Recent recommendation updates and revisions

On February 5, Morgan Stanley provided an “equal-weight” rating on MDT stock with a price target of $95. On January 19, Oppenheimer reiterated its price target of $94 with a “buy” rating for MDT stock.

Investors can gain industry-specific exposure to Medtronic by investing in the iShares U.S. Medical Devices ETF (IHI). IHI is one of the biggest US medical device ETFs. It tracks the Dow Jones U.S. Select Medical Equipment Index. MDT makes up ~9.9% of IHI’s total portfolio.


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