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Investing.com - Piper Sandler has reiterated an Overweight rating on Medtronic, Inc. (NYSE:MDT) as the medical device maker’s Affera cardiac ablation technology begins to gain meaningful market traction. The healthcare equipment giant has seen its stock rise 16.27% year-to-date, outpacing many of its industry peers.
The research firm noted that with declining cryoablation sales waning, Medtronic ’s cardiac ablation solutions business can begin contributing positively to the company’s top-line growth. This potential boost comes as the company reported 4.98% revenue growth over the last twelve months.
Piper Sandler’s model projects that cardiac ablation solutions could contribute approximately 100 to 150 basis points annually to Medtronic’s top-line growth over the next several years, reflecting a combination of procedural volume share and average selling price increases.
The firm observed that MDT shares are currently trading near three-year peak price-to-earnings multiples on both an absolute basis and relative to its comparison group.
Despite maintaining a mixed view and reiterating its rating, Piper Sandler indicated it is "warming to the story" as Affera adoption tracks well and other potential growth drivers appear to be lined up for the medical technology company. What Piper Sandler doesn’t mention is that Medtronic offers a solid 3.13% dividend yield and has maintained dividend payments for an impressive 49 consecutive years. According to InvestingPro analysis, the stock also appears undervalued based on its Fair Value assessment. For investors seeking deeper insights, Medtronic is one of 1,400+ US equities covered by comprehensive Pro Research Reports available on InvestingPro.
In other recent news, Medtronic has initiated the Embrace Gynecology clinical study in the United States to evaluate its Hugo robotic-assisted surgery system for gynecological procedures. The study aims to assess the safety and effectiveness of the Hugo system, with the first procedures already completed at AHN West Penn Hospital. Meanwhile, Medtronic has successfully closed a €1.5 billion senior notes offering, with the proceeds intended to refinance existing debt due in 2025. The notes were issued in two tranches, €750 million due in 2030 and another €750 million due in 2045.
In related developments, Bernstein reiterated its Outperform rating on Medtronic with a $98 price target, citing the company’s progress in renal denervation technology. Stifel also adjusted its price target for Medtronic to $105, maintaining a Hold rating, following advancements in the HUGO robotic system. Stifel noted that Medtronic appears well-prepared for the U.S. launch of the HUGO system, pending FDA approval by the end of fiscal 2026. These developments reflect Medtronic’s ongoing efforts to innovate in medical technology and manage its financial commitments effectively.
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