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Investing.com - JPMorgan has reiterated its Neutral rating and $87.00 price target on Medtronic , Inc. (NYSE:MDT), a $114.5 billion healthcare equipment leader with a "GOOD" financial health rating according to InvestingPro, following a proposed national coverage decision from the Centers for Medicare and Medicaid Services (CMS) for renal denervation.
The CMS proposal would provide coverage for a broad range of hypertensive patients, aligning with the indication for Medtronic’s Simplicity (NASDAQ:SMPL) Spyral device, which is approved to reduce blood pressure as an adjunctive treatment in patients whose blood pressure is not adequately controlled by lifestyle modifications and medications. The company, which has maintained dividend payments for 49 consecutive years and currently trades near its 52-week high of $96.25, has shown steady revenue growth of 3.62% over the last twelve months.
JPMorgan views the broad national coverage determination as a win for Medtronic, enabling the company to begin targeting what could potentially become a multi-billion-dollar market opportunity once the final rule is released in October. With analyst price targets ranging from $78 to $112.45, and a consensus recommendation of 2.06, investors can access detailed analysis and 10+ additional ProTips through InvestingPro’s comprehensive research reports.
Despite this positive development, JPMorgan identifies several hurdles Medtronic must overcome, including educating primary care physicians and general cardiologists who may be unaware of renal denervation, addressing concerns about the procedure’s mixed clinical track record, securing inclusion in U.S. medical guidelines, and determining which patients are most suitable for the procedure.
The coverage decision represents a significant regulatory milestone for Medtronic’s renal denervation technology, which treats hypertension by using radio frequency energy to modify nerve activity between the kidneys and the brain.
In other recent news, Medtronic, Inc. is seeing positive developments following a proposed National Coverage Determination (NCD) by the Centers for Medicare & Medicaid Services (CMS) for renal denervation (RDN) therapy. This proposal could significantly impact Medtronic’s revenue, with BofA Securities projecting an annual revenue growth of $100-150 million from this therapy. The proposed coverage targets patients with uncontrolled hypertension, aligning with the FDA’s label for Medtronic’s Symplicity device. Analysts from BTIG and Citi have noted the potential benefits of this broader coverage, with BTIG maintaining a Neutral rating and Citi reiterating a Buy rating with a $99 price target. The proposal also includes specific criteria for facilities and clinicians, which may initially limit therapy uptake. CMS’s decision could open a $5-10 billion market opportunity for Medtronic in the U.S., according to analysts. Additionally, Leerink Partners reiterated an Outperform rating with a $110 price target, highlighting the proposal as a key catalyst for investors. The final decision from CMS is anticipated by October 8, 2025, and could also benefit Boston Scientific (NYSE:BSX) in the longer term.
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