Medtronic (MDT) closed the most recent trading day at $87.17, moving +1.34% from the previous trading session.
Initiate Medtronic with Strong Buy, $161 PT, citing a structural margin inflection from Diabetes spin-off and robust innovation pipeline (120+ approvals). Street underestimates FY27 margin/EPS upside from Diabetes separation and operating leverage in Cardiac & Structural Heart—key drivers for re-rating. Valuation at 26x FY27E EPS is conservative versus peers; scenario analysis shows risk skewed to the upside, as margin catalysts execute.
I reiterate my buy rating on Medtronic, driven by solid fundamentals and an attractive valuation, despite less upside versus prior estimates. Medtronic continues to deliver steady revenue growth, robust free cash flow, and a 48-year dividend growth streak, even as sector sentiment weakens. Key risks include competitive pressures, margin threats in Diabetes and CAS, and macro headwinds like tariffs, requiring prudent management execution.
GALWAY, Ireland , June 23, 2025 /PRNewswire/ -- Medtronic plc (NYSE: MDT), a global leader in healthcare technology, today announced that its Board of Directors appointed Dr. Joon Lee, CEO at Emory Healthcare, Inc., to the Board as an independent director, effective June 18, 2025. Dr. Lee will serve on the Science and Technology Committee and Compensation and Talent Committee of the Board.
Medtronic (MDT) reported earnings 30 days ago. What's next for the stock?
Medtronic remains a dependable dividend aristocrat, but its long-term total shareholder returns lag significantly behind peers like Johnson & Johnson and Stryker. Despite a solid 2025 performance, the stock's recent gains stem from a low base, and it still trades well below its 2021 highs. Earnings growth is steady but uninspiring, with margin pressure and tariff risks highlighting operational challenges versus higher-quality competitors.
GALWAY, Ireland , June 12, 2025 /PRNewswire/ -- Medtronic plc (NYSE: MDT), a global leader in healthcare technology, today announced MiniMed as the name for the planned New Diabetes Company following the intended separation. The name honors the company's roots, reflecting its original name prior to its acquisition by Medtronic in 2001, and a deep 40-year history of being at the forefront of transforming diabetes care around the world.
Deal OverviewOn May 21, 2025, Medtronic plc (NYSE: MDT; $87.44, Market Capitalization: $112.1 billion), a global leader in medical technology, announced its intent to spin off its Diabetes business into a standalone entity (New Diabetes Company). This strategic move is designed to streamline Medtronic's portfolio, sharpen its focus on high-margin growth areas, and unlock shareholder value.
The market continues to chase growth while ignoring once beloved income stocks. Verizon offers a compelling 6.3% dividend yield, robust free cash flow, and trades well below its historical valuation, making it attractive for conservative income investors. Medtronic provides a reliable 3.5% yield, a strong balance sheet, and growth catalysts in cardiac solutions, surgical robotics, and a value-enhancing diabetes spin-off.
Medtronic plc (NYSE:MDT ) Bernstein's 41st Strategic Decisions Conference Call May 29, 2025 11:00 AM ET Company Participants Geoff Martha - Chairman and Chief Executive Officer Thierry Pieton - Executive Vice President and Chief Financial Officer Conference Call Participants Lee Hambright - Bernstein Lee Hambright All right. Very good.
A quarter of a century of increasing dividends is a hell of a way to generate some passive income. Enter Dividend Aristocrats.
Upgrading Medtronic to 'Strong Buy' with a $104 fair value, driven by the diabetes business spin-off catalyst. Divesting diabetes enables Medtronic to focus on core cardiac and surgical markets, improving operating margins and capital allocation. Recent results show robust cardiovascular growth and strong shareholder returns, with continued buybacks expected post-spin-off.