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On Monday, Barclays (LON:BARC) reaffirmed its Overweight rating on Medtronic , Inc. (NYSE:MDT) with a price target of $109.00. Currently trading at $84.16, the stock has shown resilience with a 9.11% return over the past year. According to InvestingPro analysis, Medtronic appears undervalued based on its Fair Value metrics. The endorsement comes as the medical device company reported favorable results from its EXPAND URO trial, which met safety and efficacy benchmarks. Additionally, Medtronic has submitted Hugo, a robotic-assisted surgery system, for FDA approval within the first quarter. With a robust market capitalization of $107.94B and an impressive financial health score rated as "GOOD" by InvestingPro, the company maintains a strong position in the Healthcare Equipment & Supplies industry.
The progress in Medtronic’s Hugo program is seen as a positive development by Barclays, with the potential FDA approval serving as a significant upcoming event for the company. The analyst from Barclays stated, "We see progress on this important program as positive and view the pending approval as a potential catalyst for MDT." The reiteration of the Overweight rating indicates confidence in the company’s prospects.
Medtronic’s focus on innovation is highlighted by the EXPAND URO trial, which is expected to enhance the company’s portfolio in the urology segment. The success of this trial is a testament to Medtronic’s commitment to advancing medical technology and providing effective solutions for patients.
The submission of Hugo for FDA approval marks a key milestone for Medtronic, as the company expands into the robotic-assisted surgery market. This move could potentially broaden Medtronic’s reach in the surgical field and contribute to its growth strategy.
Barclays’ reaffirmed rating and price target reflect a positive outlook for Medtronic’s stock, considering the recent advancements and regulatory milestones. The company’s strong fundamentals include a 49-year history of consecutive dividend payments and a current dividend yield of 3.33%. Shareholders and investors are likely to monitor the FDA’s decision on Hugo closely, as it could significantly influence Medtronic’s performance in the near future. For deeper insights into Medtronic’s valuation and growth prospects, investors can access comprehensive analysis through InvestingPro’s detailed research reports.
In other recent news, Medtronic reported its fiscal third-quarter 2025 financial results, with revenue reaching $8.29 billion, reflecting a 4.1% organic growth year-over-year, although slightly below the consensus estimate of $8.33 billion. The company’s earnings per share (EPS) of $1.39 surpassed expectations, marking a 7% increase year-over-year. Citi analysts responded to these results by upgrading Medtronic’s stock rating from Neutral to Buy, raising the price target to $104, citing visible growth drivers such as the Cardiac Ablation Solutions segment. In regulatory news, Medtronic has submitted two 510(k) applications to the FDA for a new interoperable insulin pump, in collaboration with Abbott, to integrate with Abbott’s continuous glucose monitoring sensors. Additionally, Medtronic, in partnership with Orchestra BioMed, received FDA Breakthrough Device Designation for its atrioventricular interval modulation (AVIM) therapy, aimed at treating patients with uncontrolled hypertension. Piper Sandler maintained a neutral stance on Medtronic stock with a price target of $90, noting limited expected use of the company’s renal denervation technology. Meanwhile, Stifel maintained a Hold rating on Medtronic, setting a price target at $87, based on ongoing assessments of Medtronic’s Transcatheter Aortic Valve Replacement (TAVR) technology. These developments reflect Medtronic’s ongoing efforts in advancing medical technology and its impact on investor sentiment.
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