Key insights
- UBS lowered its price target for Medtronic (MDT) from $104 to $90 due to the dilutive impact of the MMED IPO, estimating a $0.04 per share dilution in Q4 2026. Medtronic revised its non-GAAP EPS guidance downward. 15 analysts have revised their earnings downwards for the upcoming period. While Medtronic maintained high-single-digit EPS growth guidance on a comparable basis, the near-term dilution and analyst revisions present a slightly bearish signal for the stock.
Investing.com - UBS lowered its price target on Medtronic, Inc. (NYSE:MDT) to $90.00 from $104.00 while maintaining a Neutral rating on the stock. The shares currently trade at $83.31, near their 52-week low of $79.93, though InvestingPro analysis suggests the stock remains undervalued with a Fair Value of $94.26.
The price target reduction follows the company’s 8-K filing on March 24, 2026, which disclosed the closing of the MMED IPO. UBS updated its estimates to reflect the transaction’s impact on Medtronic’s earnings.
The MMED IPO is expected to drive a dilutive impact of approximately $0.02 per month for each month following the offering. This results in an aggregate dilutive impact of $0.04 per share during the fourth quarter of fiscal year 2026.
Medtronic updated its non-GAAP earnings per share guidance to a range of $5.50 to $5.54 for the full year, down from previous guidance of $5.62 to $5.66. UBS adjusted its fiscal year 2027 earnings per share estimate modestly lower to $6.03. According to InvestingPro Tips, 15 analysts have revised their earnings downwards for the upcoming period, reflecting broader concerns about near-term performance. For deeper insights, investors can access comprehensive Pro Research Reports covering MDT and 1,400+ other US equities.
The firm noted that Medtronic maintained guidance for high-single digit earnings per share growth. This growth level is on a comparable basis to the company’s previous range.
In other recent news, Medtronic has completed its acquisition of CathWorks for $585 million, with the potential for additional earn-out payments. This acquisition follows a strategic partnership between the two companies that began in 2022. Additionally, Medtronic has received FDA clearance for its Stealth AXiS surgical system, expanding its use to cranial and ear, nose, and throat procedures. This system integrates AI-enabled capabilities to aid surgeons during complex operations.
In terms of analyst updates, Stifel has reiterated a Hold rating on Medtronic, citing growth in renal denervation procedures. However, Stifel also lowered its price target from $105 to $95 following the spinoff of Medtronic’s diabetes business, which now operates as MiniMed. Argus has also adjusted its outlook, lowering the price target to $115 while maintaining a Buy rating, highlighting Medtronic’s focus on its Cardiovascular, Neuroscience, and Medical Surgical divisions. These developments indicate a period of strategic restructuring and technological advancement for Medtronic.
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