Piper Sandler maintains Medtronic stock neutral with $90 target

On Wednesday, Piper Sandler reaffirmed a neutral stance on Medtronic , Inc. (NYSE:MDT) stock, maintaining a price target of $90.00. The $112.7 billion healthcare equipment giant, which boasts a solid 65.6% gross margin and generates over $33 billion in annual revenue, received insights from the firm’s analyst, Matt O’Brien, regarding a key opinion leader (KOL) in interventional cardiology’s view on renal denervation (RDN), a treatment for hypertension. According to InvestingPro analysis, Medtronic currently trades near its Fair Value, with a comprehensive Pro Research Report available for deeper insights.

During a recent discussion, the KOL expressed a tepid view on the RDN technology, suggesting that most hypertension patients could be effectively managed with proper medication, adherence to treatment, and dietary changes. He noted that the subset of patients with uncontrolled hypertension, who might benefit from RDN, is relatively small. Consequently, he anticipates limited use of the technology at his center, estimating only about 25 to 50 cases per year. InvestingPro data shows Medtronic maintains a GOOD financial health score, supported by strong cash flows and a stable 3.19% dividend yield, which has been maintained for 49 consecutive years.

Despite the lukewarm reception, the KOL acknowledged that Medtronic’s Spyral system holds a slight competitive advantage over the ReCor system. The physician also showed interest in a radial approach for accessing the renal arteries, a technique that Boston Scientific (NYSE:BSX) and its recently acquired SoniVie asset are developing.

Piper Sandler’s report highlighted that while the KOL’s views are not singular and reflect broader sentiments, there is a belief that Medtronic’s system will likely capture the majority of the market share in this niche segment. However, the expectation is that the overall market size for RDN will initially be modest.

The analyst concluded that Medtronic and other companies in the RDN space will need to engage in community education to promote the benefits of RDN therapy. This suggests that the potential for RDN technology, including Medtronic’s Spyral system, may depend on increased awareness and acceptance within the medical community. With an analyst consensus rating of 2.25 and over 8 additional valuable insights available on InvestingPro, investors can access comprehensive analysis to better understand Medtronic’s market position and growth potential.

In other recent news, Medtronic, Inc. reported mixed financial results for its fiscal third quarter of 2025, with revenue reaching $8.29 billion, slightly below the consensus estimate of $8.33 billion. Despite this, the company’s earnings per share of $1.39 surpassed expectations, prompting Citi to upgrade Medtronic’s stock rating from Neutral to Buy and raise the price target to $104. Meanwhile, UBS has raised its price target to $95, maintaining a Neutral rating, reflecting concerns about the company’s future financial guidance. Stifel also maintained a Hold rating with a price target of $87, noting a slight revenue miss and a decline in the Surgical Innovations division.

Additionally, Medtronic received FDA approval for its innovative BrainSense™ Adaptive deep brain stimulation system for Parkinson’s disease, marking a significant advancement in personalized treatment. This adaptive technology automatically adjusts therapy based on real-time brain activity and is expected to be available in the U.S. soon. The approval follows a comprehensive international clinical trial assessing its safety and effectiveness.

Citi analysts highlighted visible growth drivers, such as the Cardiac Ablation Solutions segment, which saw a 22% year-over-year increase. Medtronic is also progressing with its Hugo soft tissue surgical robot and awaiting a National Coverage Determination for its renal denervation technology. These developments reflect Medtronic’s ongoing efforts to innovate and expand its product offerings in the competitive medical technology landscape.

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