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Investing.com - Bernstein maintained its Outperform rating and $98.00 price target on Medtronic, Inc. (NYSE:MDT) following recent developments in the company’s renal denervation (RDN) technology. This target closely aligns with InvestingPro’s Fair Value assessment, suggesting the stock is slightly undervalued at its current price of $90.35, with shares trading 9% below their 52-week high of $99.37.
The research firm highlighted Medtronic ’s 15-year investment journey in RDN, a minimally invasive one-time treatment for hypertension that recently received Centers for Medicare & Medicaid Services (CMS) reimbursement approval.
Bernstein noted the technology’s eventful development path, which included early success, a clinical trial failure, complete product redesign, mixed clinical trial results, and FDA panel review before ultimately securing FDA approval in November 2023.
The analyst report addressed questions surrounding the National Coverage Determination (NCD) being debated this week, which follows the recent CMS reimbursement decision.
Bernstein’s analysis examined the market opportunity for RDN technology, which Medtronic management has previously described as potentially "the biggest thing we ever do." As a prominent player in the Healthcare Equipment & Supplies industry with a market cap of $116.69B, Medtronic offers investors stability with its low price volatility (Beta 0.79) and impressive 49-year dividend payment history. Discover more insights and 6 additional ProTips with a InvestingPro subscription.
In other recent news, Medtronic has made notable progress with several developments. The company announced the initiation of the Embrace Gynecology clinical study in the United States, focusing on its Hugo robotic-assisted surgery system for gynecological procedures. This study aims to evaluate the safety and effectiveness of the system in hysterectomy procedures. Additionally, Medtronic has issued €1.5 billion in senior notes to refinance existing debt, with the proceeds intended to repay notes due in 2025.
The company has also closed this offering, raising approximately €1.49 billion after expenses. In another development, Medtronic received FDA approval for its Altaviva device, designed to treat urge urinary incontinence through minimally invasive tibial neuromodulation therapy. Meanwhile, Stifel has raised its price target for Medtronic to $105, maintaining a Hold rating, citing progress with the HUGO robotic system. These recent developments reflect ongoing advancements in Medtronic’s product offerings and financial strategies.
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