Medtronic stock faces slight headwinds as Piper Sandler maintains Neutral

Investing.com - Piper Sandler has reiterated its Neutral rating and $90.00 price target on Medtronic , Inc. (NYSE:MDT), a $120.7 billion healthcare equipment giant trading near its 52-week high of $96.25. According to InvestingPro data, the stock currently offers a 3.02% dividend yield, having maintained dividend payments for an impressive 49 consecutive years.

The research firm identified market shifts toward robotic procedures and GLP-1 medications as continuing pressures on Medtronic’s advanced surgical business, which includes stapling and vessel sealing products. Despite these challenges, the company maintains a GOOD financial health score according to InvestingPro analysis, with revenue growing at 5% over the last twelve months.

Despite the planned launch of Medtronic’s Hugo robotic system later this fiscal year, Piper Sandler expects the advanced surgical business will remain a headwind to growth, partly due to strong competition from the da Vinci robot.

The firm estimates these challenges will amount to approximately 20 basis points impact on Medtronic’s overall top-line for fiscal years 2026 and 2027, a relatively modest effect on the company’s total performance.

Piper Sandler noted that while investors are currently focused on Medtronic’s PFA (pulsed field ablation) and RDN (renal denervation) technologies, the ongoing challenges in other business segments remain worth monitoring.

In other recent news, Orchestra BioMed Holdings, Inc. presented new data indicating that its atrioventricular interval modulation (AVIM) therapy for hypertension effectively reduces blood pressure over long periods. The data, shared at the HRX Live 2025 Meeting, revealed that the therapy maintained a significant reduction in systolic blood pressure for an average of 3.6 years in patients from the MODERATO II trial. Meanwhile, Medtronic plc announced that its Hugo robotic-assisted surgery system successfully met safety and effectiveness endpoints in the Enable Hernia Repair clinical study. This study, the first of its kind in the U.S. for robotic-assisted hernia surgery, reported a 100% surgical success rate.

Additionally, TD Cowen reiterated its Buy rating and maintained a $106 price target on Medtronic, citing potential Medicare coverage for renal denervation therapy. In contrast, Wolfe Research maintained a Peerperform rating on Medtronic, noting both growth challenges and opportunities for cost-cutting. Truist Securities raised its price target on Medtronic to $96, citing activist investor Elliott Management’s involvement as a catalyst for improved execution. These developments reflect ongoing strategic and operational shifts within Medtronic, influenced by both internal and external factors.

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