Medline, Inc. Class A (MDLN) has received a new Buy rating, initiated by Leerink Partners analyst, Michael Cherny.
Claim 70% Off TipRanks Premium
- Unlock hedge fund-level data and powerful investing tools for smarter, sharper decisions
- Stay ahead of the market with the latest news and analysis and maximize your portfolio's potential
Michael Cherny has given his Buy rating due to a combination of factors tied to Medline’s integrated business model and growth profile. He views Medline as a leading, vertically integrated manufacturer and distributor of medical consumables that has steadily captured share across inpatient and outpatient markets. The company’s strong positions in hospital, lab, and expanding at-home and dental channels provide multiple avenues for sustained revenue growth. In addition, its proprietary Medline-branded products generate attractive margins, supporting a robust profitability profile.
Cherny also highlights Medline’s Prime Vendor arrangements as a key competitive advantage, creating long-term, mutually beneficial contracts that align Medline’s economics with customer cost savings. He believes this structure, together with preferred provider and supply-chain-optimization offerings, underpins continued market-share gains and above-industry revenue expansion. While he acknowledges that near-term tariff impacts will pressure fiscal 2026 margins, he expects mitigation efforts and underlying growth drivers to restore earnings momentum thereafter. Based on his EV/EBITDA valuation framework and expectations for normalized profitability, he concludes that the stock offers an attractive risk/reward, warranting a Buy rating.
In another report released today, BMO Capital also initiated coverage with a Buy rating on the stock with a $45.00 price target.