Medtronic, Inc. (MDT) Robot Initiative Likely in Market in 12 Months - SVB Leerink

SVB Leerink analyst Richard Newitter reiterated a Market Perform rating and $114.00 price target on Medtronic, Inc. (NYSE: MDT) after the company hosted an investor update to discuss its robotic assisted surgery (RAS) initiative. The biggest takeaway for the analyst was MDT's positioning that this is a highly underpenetrated market at just ~2% today, suggesting a large untapped opportunity. This has positive implications for the current market leader in robotics, Intuitive Surgical (NASDAQ: ISRG) both as a source of validation for the future of the robotics category and potential for
MDT's entry into the space to be market expansionary.

The analyst sees the event as a milestone that "at a minimum should help increase investor confidence that the company's robotic initiative is more than conceptual and within 12 months of commercialization (Internationally). For the first time, management laid out expectations for revenue contribution to MITG -- <50 bps in FY21, 100-150 bps in FY22, and 200-250 bps in FY23. Based on our estimates, this represents just under $50M, and just over $100M and $200M in sales respectively – ramping to over 50 bps of total MDT sales growth by FY23".

For an analyst ratings summary and ratings history on Medtronic, Inc. click here. For more ratings news on Medtronic, Inc. click here.

Shares of Medtronic, Inc. closed at $109.76 yesterday.

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