Analyst Travis Steed of Bank of America Securities maintained a Buy rating on Medtronic, retaining the price target of $100.00.
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Travis Steed has given his Buy rating due to a combination of factors, primarily focusing on the recent proposed National Coverage Determination (NCD) for renal denervation (RDN) by the Centers for Medicare & Medicaid Services (CMS). The proposed coverage is seen as favorable, as it broadly addresses uncontrolled hypertension without the restrictive criterion of multiple drug use. This aligns well with the FDA’s indication for RDN, which supports its use as an adjunctive treatment for patients whose blood pressure is not adequately controlled by lifestyle changes and medications.
Furthermore, Steed highlights the significant market opportunity for Medtronic in the RDN space, estimating a potential growth of $100-150 million annually. The patient population for uncontrolled hypertension is substantial, with millions of potential candidates in the U.S. and globally. This potential growth, coupled with the anticipated launch of other cardiovascular products like Affera, presents a strong upside for Medtronic’s revenue, reinforcing the Buy rating.
In another report released yesterday, RBC Capital also maintained a Buy rating on the stock with a $101.00 price target.