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Investing.com - RBC Capital has raised its price target on Medtronic , Inc. (NYSE:MDT) to $103.00 from $101.00 while maintaining an Outperform rating on the medical device maker’s stock. With a market capitalization of $115 billion and trading near its 52-week high of $96.25, Medtronic appears slightly undervalued according to InvestingPro’s Fair Value model.
The adjustment follows Medtronic’s fiscal first quarter 2026 results, which showed approximately 2% beat on both sales and earnings per share expectations, according to RBC Capital. The company’s financial health score of "GOOD" on InvestingPro supports this positive momentum, with revenue growing at 5% over the last twelve months.
The firm highlighted Medtronic’s accelerating performance in its Cardiovascular segment, which posted around 50% growth driven by continued strength in its pulse field ablation (PFA) technology.
Medtronic has raised its fiscal year 2026 sales and earnings guidance, citing improved foreign exchange and tariff outlook, RBC Capital noted in its analysis.
The company also announced the addition of two special board seats and committees focused on executing internal initiatives, with RBC Capital suggesting that involvement from activist investor Elliott Management will aid in the value creation process.
In other recent news, Medtronic, Inc. reported fiscal first-quarter 2026 results that exceeded analyst expectations, with revenue reaching $8.578 billion, marking an 8.4% increase from the previous year. The company achieved 4.8% organic growth, aligning with consensus estimates and within its guidance range. Adjusted earnings per share came in at $1.26, surpassing the expected $1.23. Segment performance was strong in Diabetes, Cardiac & Vascular, and Medical-Surgical divisions, although Neuroscience results were slightly below expectations.
In analyst developments, Bernstein SocGen raised its price target for Medtronic to $98, citing a slight increase in forward earnings estimates. Leerink Partners also raised its price target to $111, praising the performance of Medtronic’s Cardiac Ablation Solutions business. Wells Fargo (NYSE:WFC) adjusted its target to $100 following the company’s quarterly results. Meanwhile, Mizuho (NYSE:MFG) reaffirmed its $100 price target, noting positive talks with activist investor Elliot Management regarding strategic plans, including a potential Diabetes business spinoff. Despite the earnings beat, BTIG maintained a Neutral rating on the stock.
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