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Investing.com - Medtronic , Inc. (NYSE:MDT), a prominent player in the Healthcare Equipment & Supplies industry with a market capitalization of $114.5 billion, received a reiterated Buy rating and $99.00 price target from Citi on Friday. The rating follows a favorable draft decision memo from the Centers for Medicare and Medicaid Services (CMS) regarding coverage for renal denervation (RDN). According to InvestingPro data, the stock is trading near its 52-week high of $96.25, with analysts setting targets ranging from $78 to $112.45.
CMS proposed covering RDN in patients with uncontrolled hypertension, defined as blood pressure exceeding 140/90 mm Hg despite active management and stable doses of maximally tolerated guideline-directed medical therapy for at least three months. The coverage criteria align with the FDA label for Medtronic’s Symplicity Spyral system and patients studied in the SPYRAL HTN ON-MED trial. The company’s strong financial position is reflected in its GOOD overall health score on InvestingPro, with a notable track record of maintaining dividend payments for 49 consecutive years and a current dividend yield of 3.18%.
The draft memo requires that primary providers manage patients for at least six months prior to performing RDN and complete five proctored procedures for each device used. Citi noted that the proposal is largely in line with investor expectations and anticipated a favorable stock reaction.
CMS is expected to issue its final memo on October 8, 2025. Citi has opened a Positive Short-term View on Medtronic as the company anticipates several product approvals in the coming months.
Beyond the RDN system, Medtronic awaits FDA approval for its Hugo surgical robot’s urology indication, which was filed in late April 2025, as well as Type 2 Diabetes and rapid-acting insulin label expansions for its Minimed 780G, plus pump combination with Abbott’s Libre continuous glucose monitoring system.
In other recent news, Medtronic has announced several key developments. The company reported that the Centers for Medicare & Medicaid Services (CMS) has proposed broader coverage for its renal denervation treatment for uncontrolled hypertension, which could significantly impact its market potential. Leerink Partners has reiterated an Outperform rating for Medtronic, citing this proposal as an important catalyst for investors. Additionally, RBC Capital also maintained its Outperform rating, emphasizing the underappreciated market opportunity in renal denervation.
Evercore has added Medtronic to its TAP Outperform list, highlighting a favorable environment for MedTech companies, including potential benefits from tariff pauses and foreign exchange factors. In corporate governance news, Medtronic appointed Dr. Joon Lee, CEO of Emory Healthcare, to its Board of Directors, effective June 2025. The company also announced that its planned diabetes business spinoff will be named MiniMed, reviving the original name of the diabetes technology company it acquired in 2001.
The spinoff aims to streamline Medtronic’s operations and focus on diabetes management technologies. These developments reflect Medtronic’s ongoing transformation and strategic initiatives to enhance its market position.
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