Key insights
- Goldman Sachs reinstated coverage of Medtronic with a Neutral rating and a price target of $84, citing balanced risk/reward. Their analysis projects organic growth in line with the sector average but less margin expansion. Recent news includes the acquisition of SPR Therapeutics and CE mark approval for the Stealth AXiS surgical system. Overall, the report presents a neutral outlook on Medtronic's stock, with no strong signal for broader US equity market movement.
Investing.com - Goldman Sachs reinstated coverage on Medtronic, Inc. (NYSE:MDT) with a Neutral rating and set a price target of $84.00, the firm said Wednesday.
The price target represents approximately 7.5% upside potential from the market close on May 20.
Goldman Sachs views the stock as capturing balanced risk and reward at roughly a 10% discount to Large Cap MedTech peers given Medtronic’s relative organic growth and earnings growth.
The firm’s analysis reflects organic growth roughly in line with the long-term sector average of approximately 5% and earnings growth with less margin expansion due to mix. Goldman Sachs’ reinstated estimates align with consensus in fiscal year 2026 and fiscal year 2027.
The firm’s estimates diverge to the downside in outer year periods, reflecting a more risk-adjusted view of select pipeline drivers including Symplicity, Atlaviva, and Hugo, but includes meaningful contribution from Aera. For deeper analysis, investors can access Medtronic’s comprehensive Pro Research Report on InvestingPro, one of 1,400+ available reports.
In other recent news, Medtronic announced its plan to acquire SPR Therapeutics for approximately $650 million in cash, expanding its offerings in chronic pain management. This acquisition will integrate SPR’s SPRINT system, a temporary peripheral nerve stimulation therapy, into Medtronic’s neuromodulation portfolio. Additionally, Medtronic has made a $20 million investment in Orchestra BioMed to support the BACKBEAT Global Pivotal Trial, focusing on hypertension treatment in pacemaker-indicated patients. The investment completes a previously agreed-upon strategic financing arrangement between the two companies.
In another development, Medtronic has received CE mark approval for its Stealth AXiS surgical system, allowing the company to market the integrated platform across Europe. This system combines planning, navigation, and robotics for spine and cranial procedures. Analysts have taken note of these strategic moves, with some firms potentially considering adjustments to their recommendations. These developments reflect Medtronic’s ongoing efforts to enhance its medical technology capabilities and expand its market presence.
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