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Analysts have raised Medtronic’s price target to $98.44, citing activist involvement, operational improvements, and favorable policy developments, though some concerns about execution remain.

Analyst Commentary

• Bullish analysts have raised price targets on expectations that Elliott Management's active involvement and the addition of independent directors will sharpen Medtronic's strategic focus and drive stronger growth initiatives.
• Recent quarterly results showed an EPS beat, attributed to higher revenue, supporting increased price targets as management delivers some operational improvements.
• There is optimism regarding positive policy developments, most notably CMS’s preliminary reimbursement proposal for renal denervation, which could benefit Medtronic’s product uptake and revenue.
• Market sentiment around Medtronic has been partially tempered by investor disappointment with the post-earnings stock reaction, as some investors hoped for a more pronounced "beat-and-raise" quarter.
• Bearish analysts remain cautious about execution risk despite recent positive changes, highlighting that while foundational elements for organic growth appear in place, sustained operational follow-through remains critical.

What's in the News

• Medtronic is adding two independent directors, John Groetelaars and Bill Jellison, to its board and forming two new committees focused on growth, operations, tuck-in M&A, R&D investments, and cost-cutting, following Elliott Investment Management becoming a major shareholder and engaging in constructive dialogue with the company (WSJ, Key Developments).
• Elliott Investment Management expressed confidence in Medtronic's potential for accelerated growth and strategic clarity, while also supporting the board and committee enhancements (Key Developments).
• Medtronic reiterated its fiscal year 2026 earnings guidance, expecting approximately 5% organic revenue growth, and 6.5% to 6.8% revenue growth on a reported basis including FX and "Other Revenue" impacts (Key Developments).
• Medtronic completed a share repurchase tranche, buying back 2.91 million shares for $264 million between January and April 2025, with total buybacks since 2017 reaching nearly 150 million shares, representing 11.24% of outstanding shares (Key Developments).
• Medtronic shares gained alongside other diabetes device makers following news that the U.S. Department of Health and Human Services may launch a major campaign to promote the use of wearables such as continuous glucose monitors (Pink Sheet).

Valuation Changes

Summary of Valuation Changes for Medtronic

• The Consensus Analyst Price Target remained effectively unchanged, moving only marginally from $97.36 to $98.44.
• The Consensus Revenue Growth forecasts for Medtronic has risen from 5.0% per annum to 5.4% per annum.
• The Future P/E for Medtronic has fallen slightly from 26.32x to 25.77x.