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Investing.com - Leerink Partners has raised its price target on Medtronic , Inc. (NYSE:MDT) to $111.00 from $110.00 while maintaining an Outperform rating following the medical device maker’s recent earnings report. The healthcare giant, with a market capitalization of $115.26 billion, has seen its stock rise 14.38% year-to-date, according to InvestingPro data.
The research firm highlighted Medtronic’s Cardiac Ablation Solutions (CAS) business as delivering a "standout performance" during the quarter, with management indicating continued acceleration in growth expected for both fiscal second quarter and second half of 2026.
Despite the positive performance in cardiac ablation, Leerink noted weakness in U.S. sales across Medtronic’s segments, which weighed on company-wide organic growth and raised concerns about stability in the company’s base businesses.
The analyst firm remains "squarely positive" on Medtronic stock, citing several growth drivers including CAS and renal denervation, upcoming catalysts for base businesses, ongoing transformation efforts, and a shift in acquisition strategy that could bolster long-term growth.
Leerink also mentioned that activist investor Elliott Management has recently announced a stake in Medtronic, introducing "a new pillar for the bull thesis," while noting the company’s valuation remains near 30-year trough levels.
In other recent news, Medtronic, Inc. reported its fiscal first-quarter 2026 results, posting revenue of $8.578 billion, which marks an 8.4% year-over-year growth and 4.8% organic growth. These figures surpassed both BTIG and consensus estimates. The company’s adjusted earnings per share came in at $1.26, exceeding the expected $1.23. Following these results, Wells Fargo (NYSE:WFC) raised its price target for Medtronic to $100, maintaining an Overweight rating, while Evercore ISI increased its target to $107, citing the company’s overall organic growth. Stifel also raised its price target to $90, highlighting growth catalysts, though it retained a Hold rating. Mizuho (NYSE:MFG) reaffirmed an Outperform rating with a $100 price target, noting productive discussions with activist investor Elliot Management and plans to spin off the Diabetes business. Despite the positive earnings report, BTIG maintained a Neutral rating due to some underperformance in the Neuroscience division.
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