Analyst Travis Steed from Bank of America Securities maintained a Buy rating on Medtronic (MDT – Research Report) and keeping the price target at $100.00.
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Travis Steed’s rating is based on several key factors that position Medtronic favorably in the market. The upcoming fiscal quarter is crucial as it will be the first under Medtronic’s new CFO, and the company needs to demonstrate strong revenue growth to maintain its price-to-earnings (PE) multiple. Despite the challenges posed by tariffs, the focus is on Medtronic’s ability to outperform other medtech companies with a robust pipeline and solid execution.
Steed emphasizes that good revenue growth is more significant than the impact of tariffs, as evidenced by recent earnings seasons where companies maintaining their PE multiples have shown strong revenue growth. Medtronic is expected to achieve revenue growth of 4.5-5.5% and EPS growth between 0-5%, despite tariff pressures. The company’s strategic pipeline and potential trade deals offer further growth opportunities, which supports the Buy rating. Even with a conservative EPS guide, the focus on revenue growth and pipeline development is expected to drive Medtronic’s stock performance positively.
According to TipRanks, Steed is a 4-star analyst with an average return of 6.9% and a 59.52% success rate. Steed covers the Healthcare sector, focusing on stocks such as Abbott Laboratories, Dexcom, and Medtronic.
In another report released on April 28, Barclays also reiterated a Buy rating on the stock with a $109.00 price target.