Medline: Durable Growth, Expanding Market Share, and Margin Upside Support Buy Rating and $46 Target

Rick Wise, an analyst from Stifel Nicolaus, has initiated a new Buy rating on Medline, Inc. Class A (MDLN).

Rick Wise has given his Buy rating due to a combination of factors that underscore Medline’s durable growth profile and attractive profitability. He highlights Medline’s long-standing record of consistent annual revenue expansion over nearly six decades and its position as the largest pure-play MedSurg product and distribution company. The business is roughly evenly split between its own Medline Brand products and its supply chain solutions arm, a mix that supports high single-digit organic sales growth and low-teens EBITDA margins, with 2025 revenue projected at $28.2 billion and 12.1% EBITDA margin. Wise also points to Medline’s ability to win and deepen prime vendor relationships, steadily converting new and existing customers to higher-margin Medline-branded products that are competitively priced below peers, which reinforces both volume growth and margin expansion.

In addition, Wise emphasizes Medline’s scaled distribution and service infrastructure as a key competitive advantage that strengthens customer loyalty and drives share gains. Customers view Medline as both a logistics partner and a value provider, benefiting from reliable delivery and cost savings that support uninterrupted patient care. This commercial engine has already translated into roughly 10 percentage points of market share gain over the past five years, bringing Medline’s share to about 37% of the med-surg distribution market and enabling expansion into adjacent care channels such as animal health and dental. Given the company’s proven go-to-market model, strong track record, and large remaining runway for share capture and entry into related markets, Wise concludes that Medline offers a compelling growth and margin story that justifies a Buy rating and a $46 price target.

In another report released today, BMO Capital also initiated coverage with a Buy rating on the stock with a $45.00 price target.

Based on the recent corporate insider activity of 20 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of MDLN in relation to earlier this year.