Mizuho reaffirms Medtronic stock at Outperform, cites productive Elliot talks

Published 20/08/2025, 11:30
Mizuho reaffirms Medtronic stock at Outperform, cites productive Elliot talks

Investing.com - Mizuho (NYSE:MFG) has reiterated an Outperform rating and $100.00 price target on Medtronic , Inc. (NYSE:MDT), highlighting several positive developments for the medical device company. Currently trading at $89.90 and approaching its 52-week high of $96.25, the $115 billion medical device maker shows promising momentum according to InvestingPro data.

The research firm noted that Medtronic’s dialogue with activist investor Elliot Management is "amicable" with both parties aligned in their strategic direction. Plans for spinning off the Diabetes business remain intact, with Elliot agreeing with the strategic rationale for the separation.

Medtronic’s near-term execution plan aims to improve its growth algorithm from the current approximately 5% level ahead of its Analyst Day scheduled for mid-2026. The company’s Cardiac Ablation Solutions division is now exceeding a $1 billion annual run rate, driven by gains from Affera and Sphere-9 products.

The medical device maker remains on track for two key regulatory and reimbursement milestones. Its Hugo robotic surgery system is still expected to receive FDA clearance for urology applications before year-end, while reimbursement for the Symplicity renal denervation system is anticipated by October or sooner.

Mizuho emphasized that Elliot Management’s new stock positioning, including two Board appointees, creates optionality for unlocking higher growth potential during concurrent product cycles in Cardiac Ablation Solutions and renal denervation.

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% year-over-year growth. The company also posted adjusted earnings per share of $1.26, surpassing the $1.23 anticipated by analysts. Despite these strong financial results, Medtronic’s Neuroscience division underperformed slightly, affecting overall segment performance. Analyst firms have responded to these developments with varied assessments. Evercore ISI raised its price target for Medtronic to $107, maintaining an Outperform rating, while Stifel increased its target to $90 but kept a Hold rating. TD Cowen reiterated its Buy rating with a price target of $106, emphasizing the company’s strong revenue performance. These analyst actions highlight differing perspectives on Medtronic’s future potential. The company’s performance in its Diabetes, Cardiac & Vascular, and Medical-Surgical divisions showed notable strength, contributing to the positive earnings report.

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