MiniMed (MMED) Soars on Revenue Growth, Price Target Hike; Hedge Fund Conviction Weakens

MiniMed Group (MMED) experienced a 10.66% increase in its share price on Tuesday, reaching $22.42 per share, following a strong performance in the first quarter of fiscal year 2027. The company reported a 16.6% revenue growth, reaching $843 million after $723 million in the same period last year, driven by robust sales from the US and international markets.

Although MiniMed Group has yet to generate profits, it managed to eliminate a $19 million net loss from the same period in the previous fiscal year. Investment firm BTIG upgraded its price target for MMED to $28 from $25, maintaining a buy recommendation based on the company's beating of consensus estimates. StoneX Group also maintained its buy call and raised its price target to $20, highlighting optimism about a strong quarter due to pent-up demand and the Flex pump.

The company revised its organic revenue growth for full fiscal year 2027 to 10.5% from 10%, including benefits from an extra week in Q1. Despite the positive results, hedge fund sentiment towards MMED was mixed, with a 18% decrease in combined holdings to $237.55 million. While the potential of MMED as an investment is acknowledged, some believe other AI stocks offer greater upside potential and carry less risk.