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Investing.com - Medtronic , Inc. (NYSE:MDT), a $120 billion healthcare equipment giant with a GOOD financial health score according to InvestingPro, received a reiterated Buy rating and $106.00 price target from TD Cowen on Wednesday following the medical device maker’s fiscal first-quarter earnings report.
The company reported revenue of $8.54 billion, exceeding the Street’s expectation of $8.38 billion, benefiting from favorable foreign exchange rates and reflecting a solid 4.98% year-over-year growth. Medtronic also posted earnings per share of $1.26, surpassing both its own guidance and the consensus estimate of $1.23.
Based on these results, improved foreign exchange outlook, and lower U.S.-China tariffs, Medtronic raised its fiscal 2026 EPS guidance to a range of $5.60-$5.66, up from the previous forecast of $5.50-$5.60.
Despite the earnings beat and guidance raise, Medtronic shares experienced a selloff, which TD Cowen attributed to the company’s in-line organic growth of 4.8% and the lack of an increase to fiscal 2026 sales guidance.
TD Cowen characterized the stock’s pullback as "excessive" and noted that the recent stake taken by activist investor Elliott Management should "boost confidence" in Medtronic’s growth plan.
In other recent news, Medtronic, Inc. has seen several updates from various analyst firms following its fiscal first-quarter 2026 results. The company reported a roughly 2% beat on both sales and earnings per share expectations, prompting RBC Capital to raise its price target to $103 while maintaining an Outperform rating. Similarly, Wells Fargo (NYSE:WFC) increased its price target to $100, citing Medtronic’s organic growth of 4.8%, which aligns with consensus estimates and the company’s guidance range. Bernstein SocGen Group also adjusted its price target to $98, reflecting a slightly increased forward earnings estimate of $6.10 per share.
Leerink Partners highlighted Medtronic’s Cardiac Ablation Solutions business for its strong performance, raising their price target to $111 and maintaining an Outperform rating. Additionally, Mizuho (NYSE:MFG) reaffirmed its Outperform rating and $100 price target, noting productive discussions with activist investor Elliot Management regarding strategic plans, including the spinoff of Medtronic’s Diabetes business. These developments indicate a positive outlook from analysts on Medtronic’s future performance.
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