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Medtronic: Wall Street’s Views and Latest Recommendations

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Analysts’ recommendations for Medtronic

Medtronic (MDT) is the largest pure-play medical device company in the world. It offers products across four segments: CVG (Cardiac and Vascular Group), MITG (Minimally Invasive Therapies Group), RTG (Restorative Therapies Group), and DG (Diabetes Group). Since the company’s earnings release on May 24, MDT stock has fallen ~1.8%. Let’s see what Wall Street analysts are recommending for the stock.

On May 31, according to a Reuters survey of 25 brokerage firms that cover MDT stock, 60% (or 15 firms) have given Medtronic stock a “buy” or “strong buy” recommendation. The remaining 40% (or ten firms) have given the stock a “hold.” None of them have recommended a “sell.” The chart above shows a 12-month recommendation summary for MDT stock over the last three months.

Target price

On May 31, Medtronic had a consensus 12-month target price of $93.81, implying a 12-month investment return potential of ~9.2%. That’s based on MDT’s closing price of $85.89 on May 30.

Medtronic’s peers Abbott Laboratories (ABT), Zimmer Biomet Holdings (ZBH), and Stryker (SYK) had average analyst target prices of $68.56, $132.65, and $181.04, respectively. These price targets imply 12-month returns of 10.5%, 19.9%, and 3.4%, respectively.

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Recommendation revisions and updates

On May 29, Northland Securities adjusted its target price for Medtronic to $84 per share while maintaining a “hold” recommendation on the stock. The firm remains positive on Medtronic. It noted that the company was able to reverse its share losses in previous quarters on the back of strong TAVR (transcatheter aortic valve replacement) and SCS (spinal cord stimulation) growth in its fiscal fourth quarter.

After that quarter’s earnings release on May 24, some analysts updated their recommendations and target prices for MDT stock. On May 25, Leerink Partners, Morgan Stanley, Cowen and Company, Needham, and Evercore ISI all raised their target prices.

In the next part of this series, we’ll look at Medtronic’s growth expectations for fiscal 2019.

Be sure to check out all the data we’ve added to our quote pages. Now you can get a valuation snapshot, earnings and revenue estimates, and historical data, as well as dividend information. Take a look!

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