Truist Securities raises Medtronic stock price target to $96 on activist involvement

Published 21/08/2025, 17:24
Truist Securities raises Medtronic stock price target to $96 on activist involvement

Investing.com - Truist Securities has raised its price target on Medtronic , Inc. (NYSE:MDT) to $96.00 from $92.00 while maintaining a Hold rating on the medical device maker’s stock. The stock currently trades at $92.16, near its 52-week high of $96.25, with InvestingPro data showing the company maintains a GREAT overall financial health score.

The firm cited activist investor Elliott Management’s involvement as a potential catalyst for better and more consistent execution at Medtronic. This engagement has already resulted in two new board appointments, new oversight committees, and a planned investor day in mid-2026.

Medtronic reported first-quarter fiscal 2026 organic revenue growth of 4.8%, with strong performance in its pulse field ablation (PFA) business offsetting weakness in U.S. Diabetes and Specialty Therapies segments. The company also raised its earnings guidance due to lower tariffs.

Truist noted that while growth accelerators such as PFA and renal denervation (RDN) technologies are increasingly visible for fiscal years 2026-2027, the firm had hoped for a faster start to the year with 5-6% growth rather than the reported in-line results.

Despite becoming more constructive on Medtronic’s durable and profitable growth narrative, Truist maintained its Hold rating, noting uncertainty about how and when activist involvement will enhance execution to unlock faster value creation, and seeing better earnings growth potential elsewhere in its large-cap coverage.

In other recent news, Medtronic reported fiscal first-quarter earnings that exceeded expectations, with revenue reaching $8.54 billion, surpassing the anticipated $8.38 billion. The company’s earnings per share came in at $1.26, beating both its own guidance and the consensus estimate of $1.23. Following these results, several analyst firms have adjusted their price targets for Medtronic. UBS raised its target to $95 while maintaining a Neutral rating, citing a lack of clear growth momentum. TD Cowen reiterated a Buy rating with a $106 target, acknowledging the earnings beat. RBC Capital increased its target to $103, maintaining an Outperform rating after observing a 2% beat on sales and earnings expectations. Bernstein SocGen Group adjusted its target to $98, reflecting a slight increase in forward earnings estimates. Lastly, Leerink Partners raised its target to $111, highlighting the strong performance of Medtronic’s Cardiac Ablation Solutions business and projecting continued growth acceleration.

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