Key insights
- Needham reiterates a Buy rating on Medtronic (MDT) with a $101 price target, citing growth potential from its renal denervation system. Despite a slight reduction in revenue growth contribution estimates for the system, it remains a key driver for Medtronic's projected revenue growth above 6%. The company's solid financial health and recent acquisition further support a positive outlook, suggesting potential upside for the stock.
Investing.com - Needham reiterated a Buy rating and $101.00 price target on Medtronic, Inc. (NYSE:MDT) stock following an update on the company’s renal denervation system sales. The stock currently trades at $81.32, suggesting significant upside potential to the analyst’s target. According to InvestingPro analysis, the stock appears undervalued at current levels, placing it among opportunities on the platform’s most undervalued stocks list.
The firm noted that Medtronic’s Symplicity Spyral Renal Denervation System received FDA approval in November 2023. Medicare coverage for the procedure began in October 2025.
Medtronic management stated on its fourth-quarter fiscal 2026 earnings call that 200 physicians across more than 300 accounts are now listed in the physician finder. The company reported that Symplicity Spyral sales are annualizing at $100 million.
Needham updated its scenario analysis for the renal denervation system. The firm now projects the technology could contribute 0.2% to 0.9% to Medtronic’s annual revenue growth over the next few years, down from a previous estimate of 0.6% to 1.3%.
The firm stated that Symplicity Spyral represents one of several growth drivers that should enable Medtronic to sustain revenue growth above 6% for the next few years. The company’s financial foundation remains solid, with an InvestingPro Financial Health Score rated as "GREAT." For deeper insights into Medtronic’s growth trajectory and valuation, investors can access the comprehensive Pro Research Report, available for this and 1,400+ other US equities.
In other recent news, Medtronic reported fourth-quarter fiscal 2026 revenues that surpassed both TD Cowen and Street estimates, while earnings per share met expectations at $1.55, representing a 4.3% decline year-over-year. The quarter was impacted by a $0.12 charge related to Blackstone and the MiniMed separation. The company also completed a $550 million acquisition of Scientia Vascular, a medical device company specializing in neurovascular procedures. This transaction may include additional earn-out and milestone payments.
Analyst actions included Piper Sandler reiterating a Neutral rating on Medtronic with an $85 price target, following investor meetings with the company’s management. UBS lowered its price target for Medtronic shares from $90 to $85, maintaining a Neutral rating, while TD Cowen reiterated a Buy rating with a $119 price target, citing a strong quarter. The cardiovascular and spine segment showed significant growth, with a 78% increase worldwide and an 8% market share gain in the United States. BTIG also maintained a Buy rating on Medtronic, setting a $90 target.
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