Medtronic stock target cut to $101 by RBC, maintains Outperform

Published 22/05/2025, 14:54
Medtronic stock target cut to $101 by RBC, maintains Outperform

RBC Capital Markets’ revised price target and maintained Outperform rating reflect a balance between the near-term headwinds faced by Medtronic (NYSE:MDT) and the positive long-term prospects due to the company’s strong underlying business trends and growth investments. With analyst price targets ranging from $83 to $112.46 and an overall financial health score of "GOOD" from InvestingPro, which offers comprehensive analysis and 8 additional key insights about Medtronic in its Pro Research Report, investors can access deeper analysis to make more informed decisions about this healthcare leader. With analyst price targets ranging from $83 to $112.46 and an overall financial health score of "GOOD" from InvestingPro, which offers comprehensive analysis and 8 additional key insights about Medtronic in its Pro Research Report, investors can access deeper analysis to make more informed decisions about this healthcare leader.

RBC Capital Markets’ revised price target and maintained Outperform rating reflect a balance between the near-term headwinds faced by Medtronic and the positive long-term prospects due to the company’s strong underlying business trends and growth investments. With analyst price targets ranging from $83 to $112.46 and an overall financial health score of "GOOD" from InvestingPro, which offers comprehensive analysis and 8 additional key insights about Medtronic in its Pro Research Report, investors can access deeper analysis to make more informed decisions about this healthcare leader.

Despite the reduction in EPS estimates for FY26 by RBC Capital Markets, the analysts see potential upside to Medtronic’s mid-single-digit organic revenue growth outlook. The firm’s analysts believe that several catalysts exist that could drive the company’s performance. The analyst’s commentary highlighted the mixed outlook for FY26, but also pointed out that the underlying business trends remain positive.

Investors and stakeholders of Medtronic may find reassurance in the company’s strategic moves, such as the diabetes segment separation, which could streamline operations and potentially unlock value. The company’s continued investment in growth initiatives also suggests a long-term strategy aimed at maintaining its leadership in the medical technology industry.

RBC Capital Markets’ revised price target and maintained Outperform rating reflect a balance between the near-term headwinds faced by Medtronic and the positive long-term prospects due to the company’s strong underlying business trends and growth investments.

In other recent news, Medtronic, Inc. reported fourth-quarter earnings that exceeded both consensus and analyst estimates, with revenue reaching $8.93 billion, marking a 5.4% year-over-year organic increase. The company’s earnings per share (EPS) rose 15.8% to $1.62, surpassing the consensus forecast of $1.58. Looking forward, Medtronic has set guidance for approximately 5% organic revenue growth for fiscal year 2026, slightly above consensus expectations, although the EPS forecast falls short of projections. The company also announced plans to spin off its Diabetes business, a move viewed positively by analysts such as those at Bernstein, who maintained an Outperform rating and a $93 price target.

Stifel analysts maintained a Hold rating with an $87 price target, noting potential challenges from tariffs impacting fiscal 2026 earnings. Evercore ISI also reiterated an Outperform rating, adjusting their price target to $103, reflecting confidence in Medtronic’s long-term growth despite short-term tariff impacts. Meanwhile, Citi analysts lowered their price target to $98 but kept a Buy rating, highlighting the company’s strategic initiatives and potential for reinvestment. These developments indicate a mix of optimism and caution among analysts regarding Medtronic’s financial trajectory and strategic decisions.

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