Medtronic’s Promising Growth Trajectory and Market Leadership Potential in Cardiovascular and Electrophysiology Segments

Medtronic (MDT – Research Report), the Healthcare sector company, was revisited by a Wall Street analyst yesterday. Analyst Larry Biegelsen from Wells Fargo maintained a Buy rating on the stock and has a $98.00 price target.

Larry Biegelsen has given his Buy rating due to a combination of factors including the promising growth trajectory of Medtronic’s Cardiovascular Group (CVG). The outgoing president of CVG, Sean Salmon, emphasized that the fundamentals of the group are strong, with high-single-digit growth becoming the new standard. This is supported by the expansion of more than 11 therapies in major Medtech markets, which are experiencing double-digit growth rates. Additionally, the new president, Skip Kiil, has a proven track record of transforming the Cranial & Spinal business from low or no growth to a high-growth segment, which adds confidence to the potential for continued success under his leadership.
Furthermore, Medtronic’s Electrophysiology (EP) business is expected to reach a $2 billion mark in the near term, driven by strong demand for its Affera product and market share gains from competitors like Abbott and Johnson & Johnson. The company is also making significant strides in manufacturing capacity and expanding its EP mapping representatives. Medtronic’s strategic positioning and its potential to become a leader in the EP market, along with its robust position in Cardiac Rhythm Management (CRM), contribute to a positive outlook for the company’s future growth and market leadership.

Biegelsen covers the Healthcare sector, focusing on stocks such as Dexcom, Abbott Laboratories, and Medtronic. According to TipRanks, Biegelsen has an average return of 9.2% and a 59.08% success rate on recommended stocks.

In another report released on May 27, Argus Research also maintained a Buy rating on the stock with a $105.00 price target.