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Investing.com - Truist Securities raised its price target on Medtronic, Inc. (NYSE:MDT) to $110.00 from $103.00 on Thursday, while maintaining a Hold rating on the medical device maker’s stock. Medtronic currently trades at $100.34, just 0.98% below its 52-week high of $102.59. According to InvestingPro Fair Value metrics, the stock appears slightly overvalued at current levels.
The price target increase follows Medtronic’s fiscal second-quarter results, which showed revenue outperformance driven by strength in the company’s Pulsed Field Ablation (PFA) technology. Truist noted the strong performance in the Cardiovascular and Neuroscience (CAS) segment, which is expected to accelerate further with upcoming renal denervation (RDN) momentum. The company reported $34.2 billion in revenue over the last twelve months, with a growth rate of 4.98%.
The firm highlighted that CAS segment upside compensated for mixed performance in the Medical Surgical division, though the latter still reflected "execution improvement" according to the research note. Medtronic’s quarter demonstrated solid new product momentum heading into calendar year 2026. InvestingPro data shows the company maintains a "GOOD" overall financial health score of 2.87, with particularly strong momentum metrics.
Despite the revenue beat, Truist pointed out an operating margin miss and minimal earnings per share guidance raise, attributing this to higher reinvestment by Medtronic ahead of multiple major product launches. This reinvestment, while strategically sound, is keeping earnings acceleration and upside potential limited.
Truist’s higher price target reflects an increased price-to-earnings multiple that accounts for building momentum in Medtronic’s new products, though the firm remains cautious about earnings growth translation as it maintains its Hold rating.
In other recent news, Medtronic has reported its second-quarter fiscal 2026 results, which have exceeded expectations in both sales and earnings. The company achieved a 5.5% organic sales growth, surpassing forecasts by 1%, and an adjusted earnings per share growth of 8%, beating projections by 3%. Following these results, several financial firms have adjusted their price targets for Medtronic. UBS raised its price target to $102, maintaining a Neutral rating, citing growth in the Cardiovascular and Neuroscience segments. RBC Capital increased its target to $118, highlighting a 1.0% beat on sales and a 3.8% beat on earnings per share. Bernstein raised its price target to $111, noting increased R&D spending and improved gross margins. Mizuho set a new target of $125, driven by strong momentum in Medtronic’s renal denervation therapy. Additionally, Wells Fargo lifted its price target to $114, acknowledging the company’s strong organic growth and earnings performance.
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