Medtronic plc (MDT), headquartered in Dublin, Ireland, is the world’s largest medical device company. With a market cap of $108.06 billion, the company specializes in developing, manufacturing, and selling device-based medical therapies globally. It focuses on cardiac and vascular care, diabetes management, restorative therapies, and minimally invasive surgical procedures. Medtronic’s innovative technologies aim to alleviate pain, restore health, and extend life, benefiting healthcare systems, physicians, clinicians, and patients worldwide.
Medtronic has underperformed the broader market over the last year. The stock has declined 6.6% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 27.1%. In 2024, MDT’s stock is down 1.2%, compared to SPX's 10.4% gains on a YTD basis.
Narrowing the focus, MDT lagged behind the iShares U.S. Medical Devices ETF’s (IHI) 3% returns over the past year. Also, the stock's YTD loss compares to the exchange-traded fund's 3.1% returns over the same time frame.
On May 23, Medtronic’s shares declined more than 5% following the release of its Q4 earnings report despite the company surpassing earnings forecasts.
For the fiscal year ending in April 2025, analysts expect MDT’s EPS to grow 5% to $5.46 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 26 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 two “Strong Sells.”
This configuration has been consistent over the past three months.
On May 23, Josh Jennings from TD Cowen maintained a “Buy” rating on Medtronic with a price target of $95.00, which indicates a 16.7% upside from the current levels.
The mean price target of $93.75 represents a 15.2% premium to MDT’s current price levels. The Street-high price target of $104 suggests an upside potential of 27.8%.
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.
