William Blair analyst Margaret Kaczor has maintained their neutral stance on MDT stock, giving a Hold rating today.
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Margaret Kaczor’s rating is based on a combination of factors, including Medtronic’s recent financial performance and future projections. While the company reported sales and earnings per share (EPS) slightly above market expectations, driven by strong growth in cardiovascular and diabetes segments, there are concerns about future profitability. The company’s fiscal 2026 EPS guidance fell short of market expectations, primarily due to increased research and development (R&D) spending and the negative impact of tariffs.
Despite Medtronic’s promising pipeline developments and strategic initiatives, such as the spin-off of its diabetes segment, the anticipated EPS growth does not outpace sales growth. This situation, compounded by the financial headwinds from tariffs and increased R&D investments, suggests limited potential for significant stock valuation expansion in the near term. Therefore, Kaczor maintains a Hold rating, reflecting a cautious stance until more durable improvements in profitability are evident.
Kaczor covers the Healthcare sector, focusing on stocks such as Insulet, Neuronetics, and Ceribell, Inc.. According to TipRanks, Kaczor has an average return of 5.0% and a 53.68% success rate on recommended stocks.
In another report released today, J.P. Morgan also reiterated a Hold rating on the stock with a $95.00 price target.