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Investing.com - UBS raised its price target on Medtronic , Inc. (NYSE:MDT) to $95.00 from $94.00 on Wednesday, while maintaining a Neutral rating on the medical device maker’s stock. Currently trading at $93.68, near its 52-week high of $96.25, the healthcare giant commands a market capitalization of $120.14 billion. According to InvestingPro analysis, the stock is currently fairly valued, with 8 additional exclusive insights available to subscribers.
The price target adjustment follows Medtronic’s Q1 earnings report, which delivered sales and EPS upside but failed to provide a clear outline of growth reacceleration that investors have been seeking. With revenue growth of 4.98% over the last twelve months and a P/E ratio of 25.87, this lack of visible growth momentum has been central to the bearish perspective on the stock.
UBS noted that meaningful growth reacceleration is more likely to materialize in the second half of fiscal year 2026 and into fiscal year 2027, when key new products should begin contributing significantly. The firm pointed out that Medtronic’s Affera cardiac ablation solution remains somewhat supply constrained, while its renal denervation (RDN) technology faces a limited ramp until reimbursement is fully established.
The analyst report highlighted execution risk particularly within Medtronic’s MedSurg division, which continues to grow at low-single-digits. Management has indicated even lower growth expectations for the second quarter of fiscal 2026 as headwinds persist in this segment.
While Medtronic is focusing on its upcoming Hugo surgical robot launch to revitalize the MedSurg business, UBS expressed skepticism about this strategy given the competitive landscape dominated by established players, citing this concern as the foundation for maintaining its Neutral rating. Despite these challenges, InvestingPro data shows Medtronic maintains a GOOD financial health score, with a notable track record of maintaining dividend payments for 49 consecutive years, currently yielding 3.16%. Get the complete financial picture with InvestingPro’s comprehensive research report, available for over 1,400 US stocks.
In other recent news, Medtronic, Inc. reported strong fiscal first-quarter earnings, with revenue hitting $8.54 billion, surpassing the expected $8.38 billion. The company’s earnings per share were $1.26, exceeding both its own guidance and the consensus estimate of $1.23. Following these results, TD Cowen reiterated a Buy rating with a price target of $106.00. RBC Capital adjusted its price target for Medtronic to $103.00, maintaining an Outperform rating, citing a 2% beat on both sales and earnings per share expectations. Bernstein SocGen raised its price target to $98.00, noting a slight increase in forward earnings estimates. Leerink Partners highlighted Medtronic’s Cardiac Ablation Solutions business for its strong performance and raised the price target to $111.00, expecting continued growth acceleration. Wells Fargo (NYSE:WFC) also increased its price target to $100.00, following the company’s reported organic growth of 4.8%. These developments reflect positive analyst sentiment and adjustments in response to Medtronic’s recent performance.
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