Morgan Stanley analyst Patrick Wood maintained a Buy rating on Medtronic yesterday and set a price target of $107.00.
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Patrick Wood has given his Buy rating due to a combination of factors that highlight Medtronic’s strategic focus and growth potential. The company’s leadership is prioritizing data-driven capital allocation with a strong emphasis on return on invested capital, aiming for high single-digit bottom-line growth. This strategic approach is evident in their focus on key business areas such as CAS, RDN, and Hugo, which are expected to drive significant growth.
Additionally, Medtronic’s planned spin-off of its Diabetes business is on track, and the company is optimizing its portfolio to enhance performance. The management’s confidence in the current guidance, despite complex processes like tariffs and the spin-off, further supports the Buy rating. Moreover, Medtronic’s unique positioning in the market with a full portfolio of ablation solutions and its strategic efforts in areas like RDN and Hugo indicate promising growth opportunities. The company’s approach to mergers and acquisitions, focusing on markets with attractive growth and profit potential, also aligns with its strategic objectives, reinforcing the positive outlook.
In another report released on September 5, TD Cowen also maintained a Buy rating on the stock with a $106.00 price target.
Based on the recent corporate insider activity of 58 insiders, corporate insider sentiment is neutral on the stock.