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Medtronic plc (MDT) is a global healthcare technology company possessing a market cap of $104.52 billion. Headquartered in Dublin, Ireland, Medtronic is committed to improving lives by developing and producing innovative medical devices and therapies. With a diverse portfolio spanning cardiovascular, diabetes, and neurological solutions, Medtronic operates in various countries, which is crucial in advancing healthcare worldwide.
Medtronic has significantly underperformed the broader market over the last year. The stock has declined 4.4% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 15.8%. In 2024 alone, the stock has lost 2.5%, compared to SPX's 8.7% gains on a YTD basis.
Narrowing the focus, MDT also underperformed the iShares U.S. Medical Devices ETFs (IHI) on a YTD basis. The exchange-traded fund has gained marginally over this period.
On May 23, Medtronic’s shares declined more than 5% following the release of its Q4 earnings report despite the company surpassing earnings forecasts. The company reported adjusted earnings and revenue of $1.46 per share and $8.59 billion, exceeding Wall Street expectations of $1.45 per share and 8.44 billion. The company anticipates full-year earnings between $5.40 and $5.50 per share.
For the current fiscal year, ending in April 2025, analysts expect MDT’s EPS to grow 4.6% to $5.44 on a diluted basis. The company's earnings surprise history is robust. It beat the consensus estimate in each of the last four quarters.
Among the 27 analysts covering MDT stock, the consensus rating is a “Moderate Buy.” That’s based on 10 “Strong Buy” ratings, one “Moderate Buy,” 13 “Holds,” and three “Strong Sells.”
On Jul. 29, Larry Biegelsen, an analyst from Wells Fargo & Company (WFC), maintained a “Buy” rating on Medtronic with a price target of $105, which indicates a 30.7% upside from the current levels.
The mean price target of $91.78 represents a 14.3% premium to MDT’s current price levels.
On the date of publication, Rashmi Kumari did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
