Medtronic stock price target raised to $107 from $106 at Evercore ISI

Published 19/08/2025, 22:04
Medtronic stock price target raised to $107 from $106 at Evercore ISI

Investing.com - Evercore ISI raised its price target on Medtronic , Inc. (NYSE:MDT) to $107.00 from $106.00 on Tuesday, while maintaining an Outperform rating on the medical device maker’s stock. The healthcare equipment giant, currently valued at $115 billion, is trading near its 52-week high of $96.25. According to InvestingPro analysis, the stock appears fairly valued at current levels.

The firm noted that Medtronic delivered organic growth in line with expectations and would have exceeded them if not for softness in its Neuroscience division, which experienced some disruption ahead of a Tibial product launch. The company has maintained steady revenue growth of 3.62% over the last twelve months, with a healthy gross profit margin of 65.4%.

Evercore highlighted strong performance in Medtronic’s cardiac ablation segment, which grew by 50%, though it acknowledged that expectations for this business may have been elevated. The firm pointed out that supply constraints exist alongside strong demand, suggesting potential acceleration in the second half as supply issues ease.

The research note mentioned several upcoming catalysts that could drive growth, including the Tibial launch accelerating Neuroscience revenue and both Hugo and RDN US launches coming in the second half of the year.

Evercore’s new $107 price target represents approximately 18 times calendar year 2026 price-to-earnings ratio and 14 times EBITDA, with the firm citing good operational margin execution and Medtronic’s earnings per share guidance raise as factors in its decision. With a PEG ratio of 0.8 and a consistent dividend yield of 3.06%, InvestingPro data reveals 8 additional key insights about Medtronic’s financial health and growth potential.

In other recent news, Medtronic reported its fiscal first quarter 2026 earnings, surpassing expectations with an adjusted earnings per share of $1.26, above the forecasted $1.23. The company’s revenue also exceeded projections, reaching €8.6 billion compared to the anticipated €8.38 billion. Following these results, Medtronic raised its earnings guidance for the fiscal year. Despite the positive financial performance, the stock experienced a decline after the earnings announcement. Stifel responded to the earnings report by raising Medtronic’s price target from $87 to $90, while maintaining a Hold rating. TD Cowen also reiterated its Buy rating with a price target of $106, highlighting the company’s adjusted revenue of $8.54 billion, which exceeded the consensus target of $8.38 billion. Organic growth was noted at 4.8%, with the US seeing a 3.5% increase and international markets growing by 6.1%. These developments reflect the analysts’ confidence in Medtronic’s growth potential.

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