Raymond James reiterates Market Perform rating on Medtronic stock

Published 18/08/2025, 13:44
Raymond James reiterates Market Perform rating on Medtronic stock

Investing.com - Raymond (NSE:RYMD) James has reiterated its Market Perform rating on Medtronic , Inc. (NYSE:MDT), a $119 billion healthcare equipment giant, ahead of its fiscal first-quarter earnings report. According to InvestingPro data, the company currently trades at a P/E ratio of 25.6 and offers a solid 3.05% dividend yield.

The research firm notes that Medtronic’s stock has outperformed the broader medical technology sector, rising 18.35% year-to-date compared to the sector’s 1% gain, creating an "intriguing" setup for the upcoming earnings announcement. InvestingPro analysis reveals the stock is trading near its 52-week high, with additional insights available in the comprehensive Pro Research Report.

Raymond James expects Medtronic to beat revenue estimates in the fiscal first quarter and subsequently raise its guidance by at least the amount of the quarterly outperformance.

The firm highlights that adjusted earnings per share estimates have trended lower since the beginning of the year, suggesting that the two-turn multiple expansion implies expectations of upside or more consistent execution from the medical device maker.

Raymond James also points to investor excitement over new product cycles, including Affera and RDN, while noting that margins and earnings will be important aspects of the upcoming report, especially after Medtronic grew adjusted earnings per share in the high-single digit range in the second half of fiscal 2025.

In other recent news, Medtronic has announced a quarterly dividend of $0.71 per share for the second quarter of fiscal year 2026, payable on October 17, 2025. Additionally, the company has expanded its MiniMed 780G system’s indications in Europe, now including children as young as 2 years old, pregnant women, and individuals with type 2 insulin-requiring diabetes. This expansion follows the CE Mark approval, supported by clinical data demonstrating its safety and efficacy. In another development, the Centers for Medicare and Medicaid Services (CMS) proposed coverage for Medtronic’s Renal Denervation procedures, which could boost adoption among Medicare and Medicaid patients. The CMS proposal aligns with Medtronic’s clinical trial parameters and market strategy. Meanwhile, Needham has reiterated its Hold rating on Medtronic stock as the company prepares to release its fiscal first-quarter earnings. These recent developments highlight Medtronic’s ongoing efforts to expand its product offerings and secure regulatory support.

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