What Analysts Recommend for Medtronic

Stock performance

On October 12, Medtronic stock closed at $94.69, which is a ~1.7% rise from its prior-day close of $93.11 on October 11 and a ~24% rise from its 52-week low of $76.41. Medtronic hit its 52-week high of $100.15 on September 26, 2018. Medtronic’s stock price grew from $82.16 on January 2 and reached $94.69 on October 12, which is a ~15% YTD (year-to-date) increase.

What Analysts Recommend for Medtronic

Earnings trends

Medtronic generated net income of $1.1 billion in the first quarter of fiscal 2019 compared to $1.0 billion in the first quarter of fiscal 2018. In the first quarter of fiscal 2019, Medtronic reported diluted EPS (earnings per share) of $0.79 compared to $0.74 during the same period of the prior year. Wall Street analysts estimate that Medtronic will report net income of $1.14 billion and diluted EPS of $0.81 in the second quarter of 2019.

Dividends for the second quarter of fiscal 2019

On August 24, Medtronic announced a dividend of $0.50 per share for the second quarter of fiscal 2019, a ~9% year-over-year (or YoY) increase. Medtronic announced that the dividend would be payable to shareholders on record as of the close of the market on September 28. The dividend is to be paid on October 19.

Analyst recommendations

Of the 25 analysts tracking Medtronic (MDT) in October 2018, six of them recommended a “strong buy,” while seven analysts recommended a “buy.” 12 analysts recommended a “hold” for Medtronic in October 2018. On October 11, Medtronic had a consensus 12-month target price of $103.15, which indicates a ~10.78% return on investment over the next 12 months.

Peer ratings

In October 2018, of the 24 analysts tracking Boston Scientific (BSX), ~63% of them recommended “buys,” while of the 18 analysts tracking Becton Dickinson (BDX), ~72% of them recommended “buys.” Of the 17 analysts tracking Thermo Fisher Scientific (TMO), ~88% of them recommended “buys.”

On October 11, Boston Scientific (BSX) and Becton Dickinson (BDX) had consensus 12-month target prices of $40.45 and $271.47, which represents a ~12.36% and ~13.83% return on investment over the next 12 months.