Medtronic's (MDT) HUGO is Approved in Europe, Wells Fargo Talks Differentiation and Rev Levels

October 12, 2021 8:43 AM EDT
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Wells Fargo analyst Larry Biegelsen reiterated an Overweight rating and $151.00 price target on Medtronic, Inc. (NYSE: MDT) after the company announced that its Hugo robotic assisted surgery system was approved in Europe for urologic and gynecologic procedures, accounting for ~half of all current robotic procedures. . The timing was in line with MDT’s guidance.

The analyst stated "MDT expects Hugo revenue of $50-$100M in F2022 and to double or triple sales in F2023. We currently model Hugo sales of $85M and $149M in F2022 andF2023, respectively. We expect MDT to price the system competitively with ISRG, but it’s unclear if the instrument costs and per procedure cost will be comparable or potentially lower." He went on to comment "the feedback on Hugo has been overwhelmingly positive. Specifically, physicians like the open console design, as it allows them to interact with the OR team and have more than one surgeon around the console; the 3D visualization; modularity as it offers portability and flexibility for use across different ORs; and its digital surgery capabilities such as for video recording, annotation, storage, and cloud sharing. Recall that Medtronic acquired Digital Surgery in Feb’20 focused on surgical artificial intelligence (AI), data and analytics, digital education and training that it is utilizing in its offering. MDT indicated that it is building its own ecosystem around three key vectors—the robotic system and instrumentation, data analytics at the core, and visualization. MDT expects an ongoing cadence of innovation in each of the three vectors in order to shape the future of surgery."

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 $123.54 yesterday.



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