Medtronic (MDT) Stock Forecast & Price Target

Medtronic's stock outlook remains positive due to robust revenue growth driven by the continued adoption of the MiniMed 780G AID system, with diabetes revenues rising 10.4% year-over-year, surpassing consensus expectations. Additionally, the company is gaining market share in the neuromodulation sector, as evidenced by a 240 basis point increase, and anticipates overall fiscal year 2025 revenue growth of 3.4-3.8%, despite foreign exchange impacts. The improvement in profit margins, with non-GAAP gross margins up 50 basis points and operating margins up 100 basis points year-over-year, further underscores Medtronic's operational efficiency and financial strength.

Medtronic's stock faces a negative outlook primarily due to anticipated revenue growth slowing to low-single digits, attributed to unsuccessful new product launches and market share losses in certain categories. Furthermore, the company's operating margins are projected to remain flat or decline, which raises concerns about its future earnings performance, particularly following a recent top-line miss. Additionally, unfavorable currency impacts and increased R&D and SG&A expenses contribute to the overall risk profile, exacerbating the challenges presented by competitive product launches and disappointing sales in newer product lines.