Investing.com - Jefferies lowered its price target on Medtronic, Inc. (NYSE:MDT) to $88 from $95 while maintaining a Hold rating on the shares. The stock currently trades at $77.95, near its 52-week low of $73.31, though InvestingPro analysis suggests the company remains undervalued at current levels.
The medical device company reported fourth-quarter fiscal 2026 revenue of $9.8 billion, representing 6.6% organic growth and exceeding the consensus estimate of $9.62 billion and guidance of 5.7%. Earnings per share of $1.55 came in roughly in line with the consensus estimate of $1.54. According to InvestingPro Tips, Medtronic has maintained dividend payments for 50 consecutive years, offering investors a 3.64% yield. For deeper insights, investors can access the comprehensive Pro Research Report, available for MDT and 1,400+ other US equities.
Results were driven by 78% growth in the company’s CAS segment, including 124% growth in the United States. Medtronic expects Hugo, RDN, ITNS, and other new product introductions to support fiscal 2027 growth of 6.75% to 7.25%.
The fiscal 2027 guidance includes 125 basis points from an extra week in the fiscal year. The outlook accounts for annualizing CAS growth, where Medtronic expects approximately twice the mid-to-high-teens market growth rate.
Jefferies said it is adjusting its financial estimates and price target on the stock.
In other recent news, Medtronic reported impressive fourth-quarter earnings for fiscal year 2026, with both revenue and earnings per share surpassing expectations. The company achieved an adjusted earnings per share of $1.55, just above the forecast of $1.54, and revenue reached $9.8 billion, exceeding the anticipated $9.63 billion. Additionally, Medtronic provided fiscal 2027 revenue guidance above consensus, though its earnings per share guidance was below consensus.
In terms of analyst activity, BTIG upgraded Medtronic’s stock rating from neutral to buy, citing a growth outlook and a price target of $90. Analyst Sean Lavin highlighted Medtronic’s consistent mid-single-digit organic growth over the past quarters. Meanwhile, Needham adjusted its price target for Medtronic shares to $101, down from $120, while maintaining a buy rating. These developments reflect the ongoing interest and varied perspectives among analysts regarding Medtronic’s financial performance and future prospects.
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