Medtronic: Portfolio Streamlining and Diabetes Spin-Off Benefits Offset by Lower Growth Outlook and Valuation Compression, Justifying Hold Rating

Analyst Matthew Taylor of Jefferies reiterated a Hold rating on Medtronic, with a price target of $95.00.

Matthew Taylor has given his Hold rating due to a combination of factors tied to Medtronic’s updated outlook and valuation. He modestly reduced earnings forecasts for FY26–FY28 to reflect timing of the MMED IPO, one-time MiniMed Flex launch costs, and rising competitive pressure in structural heart and cardiac ablation markets, which temper the near‑term growth profile.

At the same time, Taylor acknowledges that the diabetes spin-off should streamline the portfolio, enhance margin optics, and eventually support EPS accretion via share count reduction. However, with sector multiples compressing and Medtronic’s forward growth expectations lower than previously anticipated, he now applies a reduced earnings multiple, resulting in a $95 price target that leaves limited upside versus the current share price, supporting a Hold stance rather than a more constructive rating.

In another report released yesterday, UBS also assigned a Hold rating to the stock with a $90.00 price target.

Based on the recent corporate insider activity of 53 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 MDT in relation to earlier this year.