Analyst Patrick Wood from Morgan Stanley maintained a Buy rating on Medtronic and keeping the price target at $107.00.
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Patrick Wood has given his Buy rating due to a combination of factors including Medtronic’s recent introduction of the Altaviva device, which has been approved by the FDA for treating urge urinary incontinence. The management’s presentation highlighted the significant market potential for this device, estimating it could become a $1 billion business if it captures just a small portion of the eligible patient population. This proactive approach, coupled with a comprehensive direct-to-consumer marketing campaign, underscores Medtronic’s confidence in the product’s market fit.
Furthermore, the Altaviva device offers competitive advantages such as procedural simplicity and a minimally invasive implantation process, which is expected to drive both physician and patient adoption. The device’s long lifespan and ease of use, including a straightforward battery recharge process, enhance its appeal. Additionally, Medtronic anticipates minimal overlap with its existing product lines, suggesting that Altaviva will attract mostly new patients, thereby expanding its market reach without significant cannibalization of its current offerings.
In another report released yesterday, TD Cowen also maintained a Buy rating on the stock with a $106.00 price target.
Based on the recent corporate insider activity of 58 insiders, corporate insider sentiment is neutral on the stock.