Medtronic (MDT): Revisiting Valuation After a Strong Recent Share Price Run
Why Medtronic Stock Is Back on Investors Radar
Medtronic (MDT) has quietly pushed higher this year, and the latest leg of its move has less to do with headlines and more to do with investors revisiting its steady earnings and dividend profile.
See our latest analysis for Medtronic.
After a strong run this year, the share price has cooled slightly in recent days. However, a roughly 10% 1 month share price return and robust multi year total shareholder returns suggest momentum is gradually rebuilding as investors reassess Medtronic’s growth and risk profile.
If Medtronic’s steady climb has you rethinking the sector, it could be a good moment to scan other quality names with our healthcare stocks.
With Medtronic trading modestly below analyst targets yet already delivering solid earnings and dividend growth, the key question now is clear: is this a fresh buying opportunity, or is the market already pricing in the next leg of growth?
Most Popular Narrative Narrative: 8% Undervalued
With Medtronic closing at $101.36 against a narrative fair value near $110, the current price implies investors are not fully crediting its next phase of growth.
The analysts have a consensus price target of $98.629 for Medtronic based on their expectations of its future earnings growth, profit margins and other risk factors. However, there is a degree of disagreement amongst analysts, with the most bullish reporting a price target of $112.0, and the most bearish reporting a price target of just $82.0.
Want to see what is hidden behind that spread in expectations? The narrative leans on accelerating revenues, rising margins, and a richer earnings multiple. Curious which forecasts really move the needle here? The full breakdown exposes the exact growth path this valuation depends on.
Result: Fair Value of $109.82 (UNDERVALUED)
Have a read of the narrative in full and understand what's behind the forecasts.
However, sustained margin pressure and execution risks in major product launches could quickly undermine the case for steady growth and multiple expansion.
Find out about the key risks to this Medtronic narrative.
Build Your Own Medtronic Narrative
If this view does not quite align with your own, or you prefer digging into the numbers yourself, you can build a personalized narrative in just a few minutes: Do it your way.
A great starting point for your Medtronic research is our analysis highlighting 5 key rewards and 2 important warning signs that could impact your investment decision.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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