Research Alert: CFRA Lowers Rating On Shares Of Medtronic Plc To Hold From Buy
CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:We cut our target to $83 from $118, 13.7x our FY 27 (Apr.) EPS view, below MDT's 10-year historical forward average of 17.6x. We trim our FY 26 EPS estimate to $5.52 from $5.65 due to lower profitability expectations and MiniMed IPO dilution. We cut our FY 27 view to $6.06 from $6.11. We downgrade shares to Hold from Buy following a mixed Q1 MedTech earnings season, with divergent performances across companies and multiple near-term headwinds, including margin pressures from rising raw material costs, supply chain challenges, and tariffs, which we think can also impact MDT. Adding to these pressures, MDT announced (May 11) the closure of its Santa Rosa, CA facility, which faced a $381M antitrust verdict in February. Also, the China business (~10% of total revenue) has been facing challenges from aggressive anti-corruption campaigns targeting health care and government volume-based procurement policies, triggering steep price cuts on medical devices, with limited near-term visibility on normalization.
