Analyst Josh Jennings of TD Cowen maintained a Buy rating on Medtronic, boosting the price target to $119.00.
TipRanks Black Friday Sale
- Claim 60% off TipRanks Premium for the data-backed insights and research tools you need to invest with confidence.
- Subscribe to TipRanks' Smart Investor Picks and see our data in action through our high-performing model portfolio - now also 60% off
Josh Jennings has given his Buy rating due to a combination of factors that highlight Medtronic’s strong financial performance and growth potential. The company’s revenue and earnings per share for the second quarter exceeded market expectations, with revenue reaching $8.96 billion and EPS at $1.36, both surpassing the consensus estimates. This robust performance was driven by impressive organic sales growth of 5.5%, notably higher than the anticipated 4.8%.
A significant contributor to this growth was the Cardiovascular division, which saw a remarkable 9.3% increase in organic sales, its best performance in over a decade. This was largely due to a 71% surge in Cardiac Ablation Solutions sales, underscoring the division’s strength. Additionally, the Diabetes division also showed solid growth, while the company’s gross and operating margins were in line with or slightly better than expectations. These positive indicators suggest a promising outlook for Medtronic, justifying the Buy rating.
According to TipRanks, Jennings is a 2-star analyst with an average return of 0.1% and a 47.49% success rate. Jennings covers the Healthcare sector, focusing on stocks such as Medtronic, TransMedics Group, and Boston Scientific.
In another report released today, Bank of America Securities also maintained a Buy rating on the stock with a $115.00 price target.