Medtronic (MDT) Stock Forecast & Price Target

Medtronic's recent performance indicates a robust growth trajectory, particularly within its neuromodulation and diabetes product segments, as evidenced by a 6% market growth and a 240 basis point increase in market share for neuromodulation. The company's revenue is projected to grow between 3.4% and 3.8% for FY25, complemented by a non-GAAP EPS guidance of $5.44 to $5.50, reflecting a year-over-year increase of 10-11% excluding foreign exchange impacts. Furthermore, Medtronic's improvements in gross and operating margins, alongside significant revenue growth in diabetes products, support a favorable outlook for the company's financial health and market positioning.

Medtronic's outlook is negatively impacted by anticipated revenue growth slowing to low-single digits, driven by unsuccessful new product launches and loss of market share in key product categories, coupled with flat or declining operating margins leading to below-consensus earnings. Additionally, the company faces various risks, including competition from new product launches, disappointing sales performance in sectors such as renal denervation and robotics, and adverse currency fluctuations, which could further strain financial performance. Recent financial metrics indicate a decline in R&D expense relative to sales, increasing SG&A expenses, and a slowdown in organic growth, all of which contributed to a significant drop in stock value.