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On Tuesday, Citi analysts upgraded Medtronic , Inc. (NYSE:MDT) stock rating from Neutral to Buy and increased the price target to $104 from $101. The upgrade follows Medtronic’s recent financial results, where the company reported a mixed fiscal third quarter for 2025. The revenue stood at $8.29 billion, marking a 4.1% year-over-year organic growth, which was slightly below the consensus estimate of $8.33 billion. However, Medtronic’s earnings per share (EPS) of $1.39, up by 7% year-over-year, surpassed the consensus forecast of $1.36. With a market capitalization of $121 billion and a "GOOD" financial health score according to InvestingPro, Medtronic maintains a strong position in the Healthcare Equipment & Supplies industry.
Despite an initial drop of approximately 7%, Medtronic shares have largely rebounded, posting an impressive 18% gain year-to-date and currently trading near its 52-week high of $94.93. Citi attributes the recovery to visible growth drivers for the company. These include the Cardiac Ablation Solutions segment, which saw a 22% year-over-year increase in the third fiscal quarter, driven by the PulseSelect and Sphere-9 products in conjunction with Affera, offsetting declines in cryoablation therapies.
Another potential growth area for Medtronic is its renal denervation (RDN) technology. The company is awaiting a National Coverage Determination (NCD) from the Centers for Medicare & Medicaid Services (CMS), expected in October 2025. As of February 28, there were over 70 comments submitted regarding the NCD, with an overwhelming majority of approximately 98% being positive.
Medtronic is also progressing with its Hugo soft tissue surgical robot. The company plans to submit a urology application to the U.S. Food and Drug Administration (FDA) soon, which could further propel its growth. In light of these developments, Citi has expressed confidence in Medtronic’s growth trajectory, leading to the upgraded stock rating and increased price target.
In other recent news, Medtronic reported its third-quarter earnings for fiscal year 2025, with adjusted earnings per share (EPS) of $1.39, surpassing analyst expectations of $1.36. However, the company’s revenue fell short of forecasts, coming in at $8.29 billion against the anticipated $8.33 billion. The company’s Surgical Innovations division, a significant portion of its sales, experienced a year-over-year decline of 0.4%, attributed primarily to distributor de-stocking. Despite these challenges, Medtronic remains optimistic about its core business strength and anticipates no lasting impact from the de-stocking issue. Meanwhile, UBS adjusted its price target for Medtronic to $95, maintaining a Neutral rating, reflecting a view that the recent stock price weakness may be overstated. Stifel analysts also maintained a Hold rating with a price target of $87, despite the revenue shortfall. In other developments, Medtronic received FDA approval for its BrainSense™ Adaptive deep brain stimulation system, marking a significant advancement in Parkinson’s disease treatment.
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