BofA Securities Reiterates Buy Rating on Medtronic, Inc. (MDT)

BofA Securities analyst Travis Steed reiterated a Buy rating and $100.00 price target on Medtronic, Inc. (NYSE: MDT)

The analyst comments "This afternoon the proposed NCD decision by CMS for RDN was posted (proposed decision date was July 13th). In our view the proposed coverage is best case scenario as it is broadly for uncontrolled hypertension and does not include a criterion of multiple drugs. CMS listened to the public comments which were pushing more towards broad/less restrictive coverage (see our note: RDN public comments in NCD bullish). The proposed coverage seems largely in line with the FDA label (see below for wording). The final coverage decision will be made on or before October 8th, 2025. We also think this is a positive for Boston Scientific which will have SoniVie ultrasound RDN likely in 2027. The FDA label notes Symplicity is “indicated to reduce blood pressure as an adjunctive treatment in patients with hypertension in whom lifestyle modifications and antihypertensive medications do not adequately control blood pressure.” The key coverage criteria include “Diagnosis of uncontrolled hypertension (>140/90 mm Hg) despite active management by a clinician with primary responsibility for blood pressure management” as well as “On stable doses of maximally tolerated guideline-directed medical therapy (GDMT), including lifestyle modifications, for at least 3 months before referral for RDN.” This wording seems to be normal that MDT would have expected. In our RDN market model we see RDN adding $100-150m of dollar growth per year to MDT or 30-40bps of growth (see our note: New RDN market model – plus cardio product launches). We estimate the size of the uncontrolled hypertension (>140mmHg) patient population to be 6m patients in the US and 37m patients globally who are aware they have hypertension. When looking more broadly at the overall patient opportunity this could be sized at >18m patients in the US and >100m patients globally and includes those unaware they have hypertension. We maintain our Buy rating on MDT as we see RDN as a potential growth driver for MDT over time and we see significant upside to Street electrophysiology revenue estimates with the Affera launch."

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 $89.40 yesterday.

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