Medline: Durable Moat, Secular Tailwinds, and Attractive Valuation Support Buy Rating

Brandon Vazquez, an analyst from William Blair, has initiated a new Buy rating on Medline, Inc. Class A (MDLN).

Brandon Vazquez has given his Buy rating due to a combination of factors that highlight Medline’s durable competitive position and long runway for expansion. He underscores that the company is operating in a very large and underpenetrated global healthcare supplies market, with Medline-branded products still representing a relatively modest portion of the addressable U.S. opportunity, leaving ample room for continued share gains under long-term contracts. He also points to secular tailwinds—such as demographic aging and rising healthcare utilization—that should support steady, mid-single-digit demand growth over at least the next decade.

Vazquez further notes that Medline’s significant investment in logistics infrastructure and supply chain capabilities has created a defensible moat, enabling consistently high service levels and fast delivery that would be difficult and costly for competitors to replicate. The breadth and economics of the Medline Brand portfolio, with its extensive SKU range and higher profitability versus third-party products, support a self-reinforcing “flywheel” in which margin expansion funds further distribution and service enhancements. Finally, he views the current valuation—trading modestly below comparable large-cap medical device peers on an EBITDA multiple basis—as attractive relative to the company’s competitive advantages and unusually visible growth profile, supporting his Buy recommendation.

According to TipRanks, Vazquez is a 4-star analyst with an average return of 7.4% and a 56.84% success rate. Vazquez covers the Healthcare sector, focusing on stocks such as Ceribell, Inc., Penumbra, and Medtronic.

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