Needham reiterates Medtronic stock rating on strong product cycle

Needham has reaffirmed its Buy rating and set a price target of $114.00 for Medtronic, Inc. (NYSE:MDT) stock after reviewing the company's strong first-quarter fiscal 2027 results. The medical device company reported exceeding revenue and earnings per share estimates, raising its full-year guidance for both metrics. Medtronic's 8.43% revenue growth over the past year and 65.31% gross profit margin highlighted its operational strength.

The company's non-GAAP gross margin increased by 10 basis points year-over-year, and its non-GAAP operating margin also rose by the same amount. Needham believes Medtronic is in the early stages of a strong product cycle, characterized by faster organic revenue growth. The firm highlights the company's robust performance in areas such as cardiac ablation, surgical robotics, and neuroscience, which have driven impressive first-quarter fiscal 2027 results.

Medtronic's dividend payments have remained consistent for 50 consecutive years, offering a 3.18% yield. With its strong results, Medtronic has attracted attention from other analysts, such as BTIG, which has raised its price target to $100 while maintaining a Buy rating.