Medtronic, Inc. (MDT) PT Lowered to $140 at Stifel

Stifel analyst Rick Wise lowered the price target on Medtronic, Inc. (NYSE: MDT) to $140.00 (from $145.00) while maintaining a Buy rating following earnings.

The analyst commented, "We were hopeful that Medtronic’s F2Q22 (Oct.) would reflect more-visible US procedure volume recovery/improvements. This was a slight disappointment. Still, we left the F2Q22 call highly-encouraged in broad terms that our Medtronic transformation thesis is intact. Despite a slight revenue shortfall from Covid pressures, MDT still turned in gross and operating margin improvement in the Quarter, helping exceed the Street’s 3Q21 EPS estimate by $0.03. This indicates to us that despite the now-lower FY2022 sales growth guidance, operating margin improvements could continue given the unchanged F2022 full-year EPS guidance ($5.65 -$5.75). With management’s (consciously) cautious new organic revenue growth guidance (7%-8%), it seems clear that as global headwinds lessen, numbers could move higher again. Most important, MDT’s broad-based new product pipeline continues to progress, and should have an increasingly positive and visible impact on sales growth, margins, and earnings."

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