Investing.com - Mizuho lowered its price target on Medtronic, Inc. (NYSE:MDT) to $100 from $120 while maintaining an Outperform rating on the stock.
The firm noted that Medtronic shares are currently trading below 13 times 2-year forward price-to-earnings ratio, a level reached only twice since 2013: in November 2023 following RDN trial results and during the first week of COVID in 2020. The stock currently trades at a P/E ratio of 20.63 and is hovering near its 52-week low of $73.31, with shares at $73.75.
Mizuho sees the company positioned to begin accelerating growth exiting fiscal year 2027 due to existing and new product launches that could see inflections over the next two years, including PFA, RDN, Hugo, and Altaviva.
The firm expects Medtronic to establish fiscal year 2027 guidance with organic sales growth outlook of approximately 5% and adjusted earnings per share of around $6.10 per share.
Mizuho views this outlook as incorporating a margin of safety against U.S. procedure and macroeconomic uncertainties. According to InvestingPro analysis, Medtronic appears undervalued at current levels, with the company maintaining an impressive 50-year dividend payment streak and a current yield of 3.85%. Investors seeking deeper insights can access comprehensive Pro Research Reports and exclusive ProTips on InvestingPro.
In other recent news, Medtronic plc has submitted regulatory filings to the U.S. Food and Drug Administration to expand the use of its Hugo robotic-assisted surgery system into general surgery and gynecologic procedures. The company also received clearance for its ProGrip Advanced self-gripping polypropylene mesh for robotic-assisted ventral hernia repair surgeries. Additionally, Medtronic announced strategic investments in Beluga Medical and CardioACC, companies developing intracardiac echocardiography catheter technologies. In a significant acquisition, Medtronic plans to acquire SPR Therapeutics for approximately $650 million, which will enhance its offerings in chronic pain management. Meanwhile, Goldman Sachs has reinstated coverage on Medtronic with a Neutral rating and set a price target of $84.00. This price target suggests a potential upside from recent market levels. These developments reflect Medtronic’s ongoing efforts to broaden its technological capabilities and market presence.
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