Medtronic
(NYSE: MDT)
should see its product cycle move the needle on growth, according to Needham & Co. analysts, who have upped their rating on MDT shares to Buy.
In a report out yesterday, Needham & Co. analysts led by Mike Matson noted that the Minnesota-run medtech giant is in the early stages of several major product launches in multi-billion dollar markets:
- AFib-treating pulsed field ablation, especially Affera;
- Hypertension-treating Symplicity Spyral renal denervation, which is getting a boost from Medicare’s final National Coverage Determination (NCD) for RDN;
- The small AltaViva tibial nerve stimulation (TNS) device that’s implanted near the ankle to treat urge urinary incontinence;
- The Hugo soft-tissue robotic surgery system, which achieved its first FDA clearance in December.
New products could add more than one percentage point ot Medtronic’s overall organic revenue growth, according to the analysts.
Matson and colleagues at Needham & Co. also said: “We also believe that Elliott Management’s involvement and MDT’s new board members should improve its execution, organic growth, and profitability. MDT is proceeding with the Diabetes separation, and we see potential for additional portfolio management moves, including M&A.”
MDT shares are down a bit over the past five days, trading at more than $102 apiece today.
Medtronic’s next earnings report, for the third quarter of its 2025–26 fiscal year, is on Feb. 17.
