BTIG analyst Ryan Zimmerman has maintained their neutral stance on MDT stock, giving a Hold rating on January 31.
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Ryan Zimmerman has given his Hold rating due to a combination of factors including Medtronic’s global manufacturing presence and the potential impact of tariffs. Medtronic has facilities in Mexico and China, which could be affected by tariffs imposed by the US government. The analysis suggests a potential earnings per share (EPS) impact of up to 3.4% if all products from these locations are sold in the US. However, only about 51% of Medtronic’s revenue is generated in the US, which reduces the EPS burden to approximately 1.7%.
Additionally, there are uncertainties regarding the extent of product shipments from China to the US and whether products manufactured in China are intended for the local market. Despite these tariff concerns, Medtronic’s growth has been limited to around 5%, affecting its stock valuation. Until Medtronic demonstrates consistent execution and addresses margin uncertainties, the current valuation appears to balance risk and reward appropriately, justifying a Hold rating.
In another report released on January 31, Piper Sandler also maintained a Hold rating on the stock with a $90.00 price target.