Bank of America just raised its EUR/USD forecast
Investing.com - Medtronic , Inc. (NYSE:MDT), a healthcare giant with a market capitalization of $118.65 billion, received a reiterated Overweight rating and $107.00 price target from Morgan Stanley (NYSE:MS) despite reporting quarterly results that missed some investor expectations. According to InvestingPro data, the stock is currently trading near its 52-week high, with an attractive 3.06% dividend yield.
The medical device maker posted organic sales growth of 4.8% in its first quarter, falling short of buy-side expectations that were running above 5.5%, according to Morgan Stanley’s analysis.
Several business segments showed strong performance, including the cardiac ablation solutions (CAS) division approaching 50% growth globally and exceeding 70% in the U.S., while the Neuromodulation unit grew 8.6%, driven by the Inceptiv product in pain management.
These positive results were offset by weaknesses in the Neurovascular segment due to China’s volume-based procurement policies, along with mid-single-digit declines in the Stents business.
Morgan Stanley maintained its positive outlook on Medtronic, noting that key growth catalysts remain intact, including renal denervation (RDN) therapy and cardiac ablation solutions, along with other product cycles such as Inceptiv, AiBLE, and Penditure that could potentially drive organic growth to approximately 6%.
In other recent news, Medtronic’s first-quarter fiscal 2026 earnings report has drawn attention from several analyst firms. The company reported earnings that surpassed both consensus expectations and specific analyst forecasts, with a notable $195 million, or $0.03 per share, exceeding expectations. This strong performance was driven by the Cardiovascular division, which outperformed Street estimates by $92 million, along with the Diabetes and MedSurg segments also surpassing expectations. Despite the earnings beat, Goldman Sachs reiterated a Sell rating with a $78 price target, citing a slowdown in organic revenue growth. Stifel maintained its Hold rating and $87 price target, acknowledging the company’s slight outperformance in organic growth and earnings per share. Meanwhile, Raymond (NSE:RYMD) James reiterated a Market Perform rating, noting revenue exceeded estimates due to favorable foreign exchange rates. Leerink Partners and Mizuho (NYSE:MFG) both reiterated Outperform ratings, with price targets of $110 and $100 respectively, following Medtronic’s discussions with Elliott Management to enhance company valuation. These developments highlight varied analyst perspectives on Medtronic’s recent financial performance and strategic discussions.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.