Analyst Patrick Wood of Morgan Stanley maintained a Buy rating on Medline, Inc. Class A, retaining the price target of $48.00.
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Patrick Wood has given his Buy rating due to a combination of factors, starting with Medline’s much stronger-than-expected Q4 performance, where revenue growth substantially outpaced market forecasts and was powered by both the Medline Brand and the SCS segment. He also notes that profitability exceeded expectations despite an unfavorable business mix, with EBITDA margins coming in ahead of estimates and supporting a meaningful earnings beat.
In addition, Wood highlights that the company’s 2026 outlook modestly surpasses consensus on both organic growth and EBITDA, while still appearing conservative given recent momentum in Prime Vendor contract wins that have not yet fully flowed through results. This combination of robust current execution, improving mix, and visible but underappreciated upside to forward numbers underpins his view that the stock offers attractive return potential from current levels.
According to TipRanks, Wood is an analyst with an average return of -0.6% and a 50.30% success rate. Wood covers the Healthcare sector, focusing on stocks such as Alphatec Holdings, Baxter International, and Dexcom.
In another report released on February 18, Piper Sandler also maintained a Buy rating on the stock with a $50.00 price target.