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On Wednesday, Evercore ISI kept its Outperform rating on Medtronic stock (NYSE:MDT), maintaining its $103.00 price target. The decision comes as Medtronic was recently taken off Evercore ISI’s Tactical, Actionable, Positioning (TAP) list following its earnings report. Currently trading at $84.41, InvestingPro analysis suggests the stock is undervalued, with analyst targets ranging from $85 to $112.46. The TAP list is designed to guide investors on stocks that may have significant movement due to upcoming events or earnings reports.
Medtronic, a global leader in medical technology, services, and solutions, has been closely monitored by investors, especially around earnings periods. With a market cap of $110.77 billion and an impressive 49-year streak of maintaining dividends, currently yielding 3.32%, the company demonstrates strong financial stability. InvestingPro data shows the company maintains a "GOOD" overall financial health score, with particularly strong marks in profitability metrics. The removal from the TAP list signifies that the firm has already reported its earnings, and thus, the immediate period of heightened investor attention has passed.
The TAP list, as explained by Evercore ISI, includes companies with pending earnings reports or other events that could impact their stock performance. Medtronic’s position on this list was predicated on its earnings report, which has now been disclosed to the public.
The firm’s TAP list still includes Agilent Technologies (NYSE:A), which is expected to report its earnings next week. Investors often look to such lists to adjust their market positions in anticipation of potential stock movements.
Evercore ISI’s reiteration of the Outperform rating and price target reflects the firm’s ongoing confidence in Medtronic’s performance and valuation. The price target of $103.00 remains unchanged, suggesting that the firm believes the stock has the potential to reach this level in the future.
In other recent news, Medtronic, Inc. reported its fiscal fourth-quarter earnings, revealing a revenue of $8.93 billion, which marked a 5.4% year-over-year organic increase, surpassing the consensus estimate of $8.81 billion. Earnings per share (EPS) also rose by 15.8% year-over-year to $1.62, exceeding the forecast of $1.58. The company announced plans to spin off its Diabetes franchise, aiming to create an independent, publicly traded company, which is expected to be completed within 18 months. Medtronic’s diabetes division, which generated nearly $2.5 billion in sales for the fiscal year ending April 2024, showed a 10% increase from the previous year. Evercore ISI adjusted Medtronic’s price target to $103, maintaining an Outperform rating, while Citi decreased its price target to $98 but kept a Buy rating. JPMorgan reiterated a Neutral rating with a $95 target, expressing skepticism about the value creation from the diabetes spin-off. Needham analysts maintained a Hold rating, anticipating Medtronic will slightly surpass Wall Street’s consensus estimates for revenue and EPS in the upcoming fiscal fourth-quarter 2025 earnings report. These developments reflect Medtronic’s strategic moves and financial performance, providing investors with insights into the company’s current and future trajectory.
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