Medtronic (MDT) could deliver upside to fiscal 2027 guidance as cardiac ablation, renal denervation, Hugo, Stealth AXiS, and Altaviva momentum support growth, RBC Capital Markets said in a note Wednesday.
Medtronic beat fiscal Q4 estimates, delivering 6.6% organic revenue growth and adjusted earnings of $1.55 per share. Cardiac ablation solutions led the beat, with sales up 78% from a year earlier and US growth of 124%, the brokerage said.
Management's fiscal 2027 guidance came in below consensus, but several growth drivers are improving at the same time, including renal denervation that analysts described as underappreciated, according to the note.
The brokerage said it now models fiscal 2027 adjusted sales growth of 7.1% and adjusted earnings of $5.96 per share.
RBC Capital Markets maintained its outperform rating and $118 price target on the stock.
Shares of Medtronic were up more than 4% in Thursday trading.
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