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Investing.com - TD Cowen has reiterated its Buy rating and $106.00 price target on Medtronic, Inc. (NYSE:MDT), a prominent $118.4 billion healthcare equipment company that has seen its stock surge nearly 18% year-to-date. The rating reaffirmation comes as analysts evaluate potential Medicare coverage for renal denervation (RDN) therapy. According to InvestingPro data, the stock is currently trading near its 52-week high of $96.25.
The firm noted that Medtronic’s recent letter to the Centers for Medicare & Medicaid Services (CMS) demonstrates close alignment on RDN coverage terms, suggesting the final CMS decision will likely match its proposal.
TD Cowen expects CMS to establish broad-based coverage for RDN when the final decision is released by October 8, which would unlock a significant growth opportunity for Medtronic.
The research firm highlighted that approximately half of the 18 million U.S. patients with uncontrolled hypertension are Medicare patients, representing a substantial market potential.
Medtronic has already secured favorable Medicare reimbursement for RDN, including a New Technology Add-on Payment (NTAP), according to TD Cowen’s analysis.
In other recent news, Medtronic, Inc. reported revenue of $8.54 billion for its fiscal first quarter, surpassing the Street’s expectations of $8.38 billion. The company also posted earnings per share of $1.26, exceeding both its own guidance and the consensus estimate of $1.23. RBC Capital responded to these results by raising its price target for Medtronic to $103, maintaining an Outperform rating. Similarly, TD Cowen reiterated its Buy rating with a price target of $106. UBS also raised its price target to $95, noting the sales and EPS upside but expressing concerns over the lack of visible growth momentum. Truist Securities increased its price target to $96, citing activist investor Elliott Management’s involvement as a potential catalyst for better execution. Wolfe Research maintained its Peerperform rating, highlighting potential improvements in gross margins and cost reductions. These developments reflect ongoing efforts and challenges faced by Medtronic in its operational and financial strategies.
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