On Wednesday, Medtronic , Inc. (NYSE:MDT) saw its price target increased to $94.00 from $92.00 by Oppenheimer, while the firm maintained a Perform rating on the stock.
The adjustment followed Medtronic's announcement of an increased forecast for its fiscal year 2025, with the low-end of organic sales guidance being raised to 4.5-5% from the previous 4-5%, and a slight uptick in EPS guidance to $5.42-5.50 from $5.40-5.50.
The company's first fiscal quarter showcased several positive developments. Management expects a boost in Pulsed Field Ablation (PFA) growth in the second fiscal quarter, driven by the PulseSelect product. Additionally, the submission of Affera to the FDA is anticipated to aid Medtronic in regaining growth in the atrial fibrillation (AF) market.
Medtronic is also making progress on the reimbursement front for its Spryal renal denervation system, with a pass-through payment from the Centers for Medicare & Medicaid Services (CMS) in the outpatient setting awaiting approval. The enrollment for the HUGO urology trial has been completed, with a 30-day trial follow-up completed. Medtronic plans to submit for urology approval through a de novo 510(k) application, while trials for hernia and gynecology (GYN) are ongoing.
The company reported that its end-markets, including China, remain robust. In the diabetes segment, Medtronic outperformed expectations, particularly with its 780G system, which celebrated its launch anniversary during the first fiscal quarter.
The overall sentiment from Oppenheimer is that the successful ramp-up of at least two of Medtronic's key pipeline launches will be crucial. The firm is closely monitoring visibility on these drivers as they may influence the company's performance.
In other recent news, Medtronic Inc (NYSE:MDT). reported a 5.3% revenue increase for the first quarter of fiscal 2025, surpassing expectations. The company's highest-grossing businesses saw an 8% growth, leading to a raise in full-year revenue and EPS guidance.
Amidst this financial growth, Medtronic announced a global partnership with Abbott and appointed Gary Corona as the Interim CFO. Analyst firms Mizuho, Baird, Wells Fargo (NYSE:WFC), Wolfe Research, and Deutsche Bank (ETR:DBKGn) responded to these developments with varying perspectives. Mizuho increased Medtronic's price target to $98 and maintained an Outperform rating, while Baird raised the price target to $90, maintaining a Neutral rating.
Wells Fargo kept its Overweight rating on the stock, highlighting strong first-quarter revenue. However, Wolfe Research maintained its Underperform rating citing competitive pressures and Deutsche Bank kept its Hold rating, noting the need for a more substantial beat and raise pattern for momentum.
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