Analyst Patrick Wood of Morgan Stanley maintained a Buy rating on Medtronic, retaining the price target of $98.00.
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Patrick Wood’s rating is based on the recent proposed decision memo from CMS regarding the coverage of Renal Denervation (RDN), which aligns with expectations and includes Medtronic’s Symplicity Spyral system. The memo outlines favorable coverage criteria, such as the inclusion of patients with uncontrolled hypertension exceeding 140/90 mm Hg, which broadens the potential market for RDN treatments. This development is expected to positively impact Medtronic’s stock, as it opens up a larger CMS-reimbursed total addressable market than investors had anticipated.
Furthermore, Medtronic’s management has expressed confidence in the RDN opportunity, highlighting the potential for significant patient reach and favorable economics for providers. The company is preparing to scale production in anticipation of increased demand following the final decision memo, expected by October 8th. This strategic positioning suggests that Medtronic is well-placed to capitalize on the RDN market, supporting the Buy rating from Patrick Wood.
Wood covers the Healthcare sector, focusing on stocks such as Boston Scientific, Insulet, and Steris. According to TipRanks, Wood has an average return of -0.8% and a 59.38% success rate on recommended stocks.
In another report released today, Bank of America Securities also maintained a Buy rating on the stock with a $100.00 price target.