Medtronic: Fairly Valued on Aligned EPS Guidance and Higher Interest Costs, Justifying a Hold Rating

William Blair analyst Brandon Vazquez has maintained their neutral stance on MDT stock, giving a Hold rating on December 18.

Brandon Vazquez has given his Hold rating due to a combination of factors tied mainly to his updated financial model rather than a change in Medtronic’s fundamental outlook. He kept his revenue projections intact, indicating he does not currently see a catalyst that would drive stronger top-line growth than previously expected. At the same time, he revised his interest expense assumptions upward to better match management’s indications, which led to a modest reduction in his earnings-per-share outlook. These updated EPS projections now track closely with the company’s own non-GAAP guidance, suggesting limited near-term upside versus expectations already reflected in the market.

Given that his forecasts largely converge with management’s targets, Vazquez appears to view the risk/reward profile as balanced rather than skewed toward either significant upside or downside. The lack of material changes to the revenue view combined with only slight earnings pressure from higher interest costs supports a neutral stance instead of a more decisive Buy or Sell. In essence, the stock appears fairly valued relative to its refined earnings outlook and current guidance, leading him to maintain a Hold recommendation.

In another report released on December 18, Truist Financial also maintained a Hold rating on the stock with a $107.00 price target.