Goldman Sachs Reinstates Coverage of Medtronic with Neutral Rating
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 3 days ago
0mins
Source: Yahoo Finance
- Coverage Reinstatement: On May 21, Goldman Sachs reinstated coverage of Medtronic (NYSE:MDT) with a Neutral rating and an $84 price target, indicating a balanced risk/reward profile in the current market environment.
- Market Positioning: Goldman noted that Medtronic's stock is priced about 10% below larger MedTech peers, reflecting challenges in its organic revenue and earnings growth compared to competitors, highlighting the company's competitive hurdles.
- Revenue Growth Expectations: Goldman projects that Medtronic's organic revenue will grow in line with the long-term medtech sector average of around 5%, but due to a less favorable product mix for margin expansion, earnings growth is expected to be more modest, necessitating stronger top-line growth for bottom-line improvement.
- Rating History: Goldman initially rated Medtronic as Sell in May 2024 with an $83 target, later upgrading to Neutral in November 2025 with a $111 target, indicating a reassessment of the company's outlook.
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Analyst Views on MDT
Wall Street analysts forecast MDT stock price to rise
20 Analyst Rating
11 Buy
9 Hold
0 Sell
Moderate Buy
Current: 75.570
Low
102.00
Averages
111.76
High
120.00
Current: 75.570
Low
102.00
Averages
111.76
High
120.00
About MDT
Medtronic Public Limited Company is an Ireland-based company, which provides healthcare technology solutions. The Company’s products category includes Advanced Surgical Technology; Cardiac Rhythm; Cardiovascular; Digestive & Gastrointestinal; Ear, Nose & Throat; General Surgery; Gynecological; Neurological; Oral & Maxillofacial; Patient Monitoring; Renal Care; Respiratory; Spinal & Orthopedic; Surgical Navigation & Imaging; Urological; Product Manuals; Product Ordering & Inquiries; and Product Performance & Advisories. Its products include Cardiac Implantable Electronic Device (CIED) Stabilization, Aortic Stent Graft Products, CareLink Personal Therapy Management Software, CareLink Pro Therapy Management Software. Its services and solutions include Ambulatory Surgery Center Resources, Care Management Services, Digital Connectivity Information Technology (IT) Support, Equipment Services and Support, Innovation Lab, Medtronic Healthcare Consulting, and Office-Based Sinus Surgery.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Coverage Reinstatement: On May 21, Goldman Sachs reinstated coverage of Medtronic (NYSE:MDT) with a Neutral rating and an $84 price target, indicating a balanced risk/reward profile in the current market environment.
- Market Positioning: Goldman noted that Medtronic's stock is priced about 10% below larger MedTech peers, reflecting challenges in its organic revenue and earnings growth compared to competitors, highlighting the company's competitive hurdles.
- Revenue Growth Expectations: Goldman projects that Medtronic's organic revenue will grow in line with the long-term medtech sector average of around 5%, but due to a less favorable product mix for margin expansion, earnings growth is expected to be more modest, necessitating stronger top-line growth for bottom-line improvement.
- Rating History: Goldman initially rated Medtronic as Sell in May 2024 with an $83 target, later upgrading to Neutral in November 2025 with a $111 target, indicating a reassessment of the company's outlook.
See More
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- Consumer Resilience: Coca-Cola and Procter & Gamble, both Dividend Kings, maintain high dividend yields of 2.6% and 2.9% respectively, showcasing their robust business models and market adaptability, which help stabilize cash flow during economic downturns.
- Healthcare Sector Stability: Johnson & Johnson and Medtronic also demonstrate strong performance in the healthcare sector, offering dividend yields of 2.3% and 3.6%, indicating that the inelastic demand for medical care allows these companies to remain profitable amid economic fluctuations.
- Valuation Insights: Coca-Cola's price-to-earnings ratio is slightly below its five-year average, suggesting reasonable pricing, while Procter & Gamble's P/E is even lower, indicating potential undervaluation that may attract value investors.
- Portfolio Strategy: Given the increasing risk of economic recession, investors are advised to consider adding these resilient consumer and healthcare stocks to their portfolios to mitigate potential economic downturn risks.
See More
Resilient Stocks to Consider Amid Recession Fears
- Resilient Sector Focus: In light of impending economic recessions, investors are advised to concentrate on resilient sectors such as consumer staples and healthcare, which maintain stable cash flows and profitability by selling essential everyday products even during downturns.
- Coca-Cola and Procter & Gamble: Both companies, recognized as 'Dividend Kings', offer dividend yields of 2.6% and 2.9% respectively, with their price-to-earnings ratios currently below their five-year averages, indicating that their stock prices are reasonably valued and suitable for income-seeking investors.
- Strong Healthcare Options: Johnson & Johnson and Medtronic also demonstrate resilience in the healthcare sector, with dividend yields of 2.3% and 3.6% respectively; while J&J's P/E is above its five-year average, its diversified operations provide investors with effective risk management.
- Medtronic's Growth Potential: Medtronic achieved its highest revenue growth rate in ten quarters during Q3 of fiscal 2026, and although the company is undergoing restructuring to enhance innovation, its attractive dividend yield compensates investors for their patience during this transition.
See More
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- Dell's Impressive Earnings: Dell Technologies' latest earnings report is described as a 'blowout,' indicating strong market demand that could signify its dominance in the computer space, further fueling enthusiasm around data center trades.
- Nvidia's Challenges: While tech stocks have performed well, Nvidia has emerged as a notable laggard, with expectations that CEO Jensen Huang's upcoming keynote at Computex in Taiwan could introduce new products and potentially shift this trend.
- Market Dynamics to Watch: Next week, Merck will review its cancer portfolio, while Palo Alto Networks and Ulta are set to report earnings; Cramer anticipates that these companies may be influenced by AI-driven market changes, particularly in cybersecurity.
- Employment Data Impact: The Labor Department's jobs report on Friday will shape expectations for interest rate cuts, with Cramer noting that the data needs to be weak enough to justify a rate cut from the Federal Reserve, which could influence investor decisions.
See More
Dell Technologies Earnings Ignite AI Enthusiasm
- Dell's Blockbuster Earnings: Dell Technologies' recent earnings report is described as a 'blowout,' reigniting enthusiasm for AI and data center stocks, and potentially marking a pivotal moment for its dominance in the computer space.
- Nvidia's Lagging Performance: Despite the strong performance of tech stocks, Nvidia has emerged as a laggard, with Cramer suggesting that next week's Computex keynote by CEO Jensen Huang could provide crucial updates that may shift this trend.
- Upcoming Earnings Reports: A series of earnings reports from companies like Palo Alto and Broadcom next week are expected to offer significant insights for investors, particularly regarding the rising AI-driven cybersecurity threats that could impact results.
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See More
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- Market Cap Comparison: Trane Technologies (TT) boasts a market cap of $99.97 billion compared to Medtronic (MDT) at $97.02 billion, indicating a competitive edge that may attract more attention from large funds.
- Investor Misconceptions: Many novice investors mistakenly compare stock prices to gauge company value, yet market capitalization provides a more accurate assessment, enabling smarter investment decisions.
- Market Positioning Impact: A company's market cap not only affects its ranking among peers but also determines which mutual funds and ETFs may invest in the stock, influencing its liquidity and market performance.
- Stock Price Fluctuations: At Friday's close, TT's stock fell approximately 0.1%, while MDT's dropped about 2.4%, reflecting differing market sentiments and expectations for the two companies.
See More
Goldman Sachs Reinstates Coverage of Medtronic with Neutral Rating
- Coverage Reinstatement: On May 21, Goldman Sachs reinstated coverage of Medtronic (NYSE:MDT) with a Neutral rating and an $84 price target, indicating a balanced risk/reward profile in the current market environment.
- Market Positioning: Goldman noted that Medtronic's stock is priced about 10% below larger MedTech peers, reflecting challenges in its organic revenue and earnings growth compared to competitors, highlighting the company's competitive hurdles.
- Revenue Growth Expectations: Goldman projects that Medtronic's organic revenue will grow in line with the long-term medtech sector average of around 5%, but due to a less favorable product mix for margin expansion, earnings growth is expected to be more modest, necessitating stronger top-line growth for bottom-line improvement.
- Rating History: Goldman initially rated Medtronic as Sell in May 2024 with an $83 target, later upgrading to Neutral in November 2025 with a $111 target, indicating a reassessment of the company's outlook.
See More
