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Investing.com - William Blair has reiterated a Market Perform rating on Medtronic , Inc. (NYSE:MDT), a $114.5 billion healthcare equipment giant with a strong financial health score according to InvestingPro, following a proposed coverage decision from the Centers for Medicare and Medicaid Services (CMS) for renal denervation (RDN) treatment.
CMS announced on Thursday its proposal to cover RDN for uncontrolled hypertension under specific clinical conditions. The proposal outlines coverage criteria for patients, physicians, facilities, and studies to determine which patient populations can benefit from the procedure, with a final decision expected around early October.
Medtronic estimates over 18 million people in the U.S. have uncontrolled hypertension (>150 mmHg), representing a potential market worth tens of billions of dollars. The proposed patient criteria include diagnosis of uncontrolled hypertension (>140/90 mmHg) despite active management, diagnosis using ambulatory or serial home blood pressure readings, and stable doses of maximally tolerated guideline-directed medical therapy for at least three months before referral.
Medtronic has already taken steps to prepare for market entry by growing its commercial organization, training physicians on coding and billing, and creating partnerships to establish patient pathways. The company’s Symplicity RDN system is expected to see revenue ramp up once fully covered, though William Blair conservatively expects minimal revenue contribution in fiscal 2026.
William Blair views this development as a positive update for Medtronic after 15 years of clinical trials and investments in RDN technology, but maintains its Market Perform rating while looking for signs of acceleration. The stock currently trades at a P/E ratio of 24.7x, with analyst price targets ranging from $78 to $112.45. InvestingPro analysis indicates the stock is trading near its Fair Value, with additional insights available in the comprehensive Pro Research Report covering this healthcare leader.
In other recent news, Medtronic has been at the forefront of significant developments following the Centers for Medicare and Medicaid Services (CMS) proposal to cover renal denervation (RDN) therapy. This proposed National Coverage Determination (NCD) is seen as a potential boost for Medtronic’s Symplicity Spyral device, which targets patients with uncontrolled hypertension. Analysts from BofA Securities and Citi have maintained a favorable outlook on Medtronic, with BofA Securities projecting the RDN therapy could contribute $100-150 million in annual revenue growth. Meanwhile, Citi reiterated its Buy rating, citing the proposal’s alignment with expectations and its potential to positively impact Medtronic’s stock.
JPMorgan, however, maintained a Neutral rating, pointing out challenges such as educating healthcare providers and securing guideline inclusion. BTIG also kept a Neutral rating, noting that facility and clinician requirements could slow the initial adoption of the therapy. The CMS proposal outlines coverage for patients with blood pressure exceeding 140/90 mm Hg, who are on stable medication regimens, opening a significant market opportunity estimated between $5-10 billion in the U.S. The final CMS decision is anticipated by October 8, 2025, and could also benefit competitors like Boston Scientific (NYSE:BSX), which is developing similar RDN technology.
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