Medtronic, Inc. (MDT) PT Raised to $104 at Wells Fargo

Wells Fargo analyst Larry Biegelsen raised the price target on Medtronic, Inc. (NYSE: MDT) to $104.00 (from $102.00) while maintaining a Overweight rating.

The analyst comments "FQ1 EPS beat supported by higher revenue and gross margin. FQ1 total rev of $9.76B beat consensus/our estimate of $9.55B with organic growth of 13.7% (vs. our est. of 11.7%), or +7.0% excl. ~670bps from 1 extra selling week. EPS of $1.45, just above Street of $1.39 / our est. of $1.38. CAS grew 88% WW and 139% US in FQ1. We estimate that the WW EP market grew ~15% in CQ2 and MDT gained ~120bps of sequential market share. MDT noted the Affera installed base grew 35% q/q (after 40% q/q in FQ4). FY27 organic growth guidance raised. MDT raised F27 organic sales growth guidance to 7.25-7.75% from 6.75-7.25%, compared to our prior 7.1% est (or +5.8% excluding extra week). We estimate the guidance outlook includes ~160bp benefit from 53rd wk and assumes a full year revenue from Diabetes. Guidance assumes the EP market grows mid- teens in FY27 and CAS can grow >3x this in FQ2 and >2.5x this in FY27 (up from prior est. of 2x). Guidance does not assume any benefit from the BSX cyberattack. F27 EPS guidance raised. MDT raised EPS guidance to $5.94-$6.00 from $5.90-$6.00, vs. our est./consensus of $5.95. The EPS outlook includes benefit of 53rd week, increased M&A, tariffs, interest and tax expense, and assumes full year Diabetes consolidation. We believe there is upside to guidance if the Diabetes separation happens before FY-end, which we estimate at ~$0.01-0.02 per month plus the eventual share reduction."

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