Raymond James initiates QXO stock with Outperform rating on acquisition strategy
Investing.com - Bernstein SocGen Group raised its price target on Medtronic , Inc. (NYSE:MDT) to $98.00 from $97.00 while maintaining an Outperform rating. The medical device giant, currently trading at $89.90 and boasting a market cap of $115 billion, has shown strong momentum with a 14% gain year-to-date. According to InvestingPro analysis, the stock appears slightly undervalued at current levels.
The firm’s adjustment reflects a slightly increased forward earnings estimate of $6.10 per share, up from the previous estimate of $6.09, while maintaining the same forward price-to-earnings multiple of 16.0x.
Bernstein SocGen acknowledged that turnarounds require time and expressed hope that recent activist involvement could serve as a catalyst for Medtronic to better capitalize on growth opportunities.
The research firm identified several potential areas for improvement, including reinvestment in the business, consideration of more substantial portfolio changes, and acceleration of tuck-in mergers and acquisitions.
At current valuation levels, Bernstein SocGen sees greater upside potential than downside risk for the medical device company’s stock.
In other recent news, Medtronic, Inc. reported fiscal first-quarter 2026 results that exceeded analyst expectations, with revenue reaching $8.578 billion, marking an 8.4% year-over-year increase and 4.8% organic growth. The company also posted adjusted earnings per share of $1.26, surpassing the $1.23 forecasted by analysts. Leerink Partners raised its price target for Medtronic to $111, highlighting the strong performance of the Cardiac Ablation Solutions business. Wells Fargo (NYSE:WFC) also adjusted its price target to $100, noting that Medtronic’s organic growth was in line with consensus estimates. Mizuho (NYSE:MFG) reaffirmed an Outperform rating, noting productive discussions with activist investor Elliot Management, who supports the strategic spin-off of Medtronic’s Diabetes business. Evercore ISI increased its price target to $107, maintaining an Outperform rating and mentioning that Medtronic’s overall growth met expectations despite some challenges in the Neuroscience division. BTIG maintained a Neutral rating despite the earnings beat, acknowledging the company’s strong performance in several divisions. These developments reflect a positive outlook from various analyst firms on Medtronic’s recent performance and strategic direction.
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