Medtronic raised its fiscal 2027 organic revenue growth forecast to 7.25%-7.75% after Q1 organic sales rose 13.7%; it estimated an extra fiscal week contributed $570 million in revenue. Analysts lifted price targets but remain split on whether growth warrants a higher valuation.
Cardiac Ablation Solutions (CAS) revenue rose 88%; CRM, Pelvic Health and diabetes each grew 15%, and management expects CAS to grow more than 2.5 times its market in fiscal 2027. Mizuho raised its target to $115 and BofA to $110. Deutsche Bank, Truist and Stifel raised targets but kept Hold ratings; Baird lifted its target but stayed Neutral.
BTIG kept a Buy rating but questioned the durability of Hugo after Medtronic's $700 million investment in Cornerstone Robotics. Medtronic is also reinvesting some revenue upside in commercial acceleration and acquisitions. In Q2, several funds increased their stakes, while short interest fell about 33% to 12.13 million shares by Aug. 31. Medtronic traded at a 15.1 forward P/E on Sept. 22; its Dec. 10-11 Investor Day could provide the next major update on longer-term growth.
