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Medtronic stock holds strong with steady target and Buy rating on sales growth

EditorNatashya Angelica
Published 05/24/2024, 11:17 AM
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MDT
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On Friday, TD Cowen maintained a positive outlook on Medtronic , Inc. (NYSE:MDT), reiterating a Buy rating and a stock price target of $95.00. The medical technology company reported fourth-quarter revenue and earnings per share (EPS) that surpassed Wall Street expectations. Medtronic's revenue reached $8.59 billion, and EPS was $1.46, outperforming the anticipated figures of $8.44 billion in revenue and $1.45 EPS.

The company experienced a 5.4% organic sales growth, exceeding its own forecast of 4-4.5%. This growth was driven by meeting or surpassing market-specific demand (MSD) across all four of its business units. Looking forward, Medtronic has set its fiscal year 2025 guidance to align with market estimates. The company is aiming for an organic sales growth of 4-5% and an EPS in the range of $5.40-$5.50.

Medtronic expects to see an acceleration in sales growth fueled by the launch of new products. Moreover, the company projects that its EPS growth will reach the high single digits (HSDs) by the end of the fiscal year. This positive performance aligns with the company's strategic plans and product development initiatives.

Investors have been keeping a close eye on Medtronic's financial health and growth trajectory. The latest earnings report and future guidance suggest that the company is on a solid path, with new product launches on the horizon potentially bolstering its market position.

The reaffirmed Buy rating and stock price target by TD Cowen reflect confidence in Medtronic's ability to continue its growth and deliver value to shareholders. The company's recent performance and optimistic outlook underscore its resilience and potential in the medical technology industry.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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