Overview#
Jefferies has lowered its price target for Medtronic, Inc. (NYSE:MDT) from $108 to $95 while maintaining a Hold rating on the stock. Currently, Medtronic's shares are trading at $83.79, close to its 52-week low of $79.93, reflecting challenges in the healthcare equipment sector.
Earnings Forecast Adjustments#
The firm has revised its earnings per share (EPS) estimates for fiscal 2026, reducing it by $0.12 to $5.52. This adjustment considers the timing of the MMED IPO, which accounts for about $0.04, and one-time expenses related to the Minimed Flex product. Jefferies also cut its EPS forecast for fiscal 2027 by $0.04 to $6.05. Despite these changes, Medtronic anticipates high single-digit growth in EPS from its previous guidance of $5.64.
Price Target Reductions from Other Firms#
In addition to Jefferies, other firms have also adjusted their price targets for Medtronic. UBS has lowered its target from $104 to $90, maintaining a Neutral rating. Stifel has reiterated a Hold rating with a price target of $95, down from $105, while Argus has adjusted its target from $125 to $115, keeping a Buy rating. These changes reflect the impact of the MMED IPO on Medtronic's earnings and the company's ongoing efforts to enhance growth in various sectors.
Recent Acquisition#
Recently, Medtronic completed its acquisition of CathWorks for $585 million, a company focused on technologies for diagnosing and treating coronary artery disease. This acquisition may also involve additional undisclosed payments based on performance. Despite the challenges reflected in the price target adjustments, some analyses suggest that Medtronic may still be undervalued at its current stock price.