Headwinds and Tailwinds Still Largely Balanced

Goldman Sachs reinstates coverage on Medtronic at Neutral with a $84 target price, viewing the stock as fairly valued given balanced growth drivers and risks. While newer products like the Affera PFA system show strong momentum, structural headwinds in the surgical business and competitive pressures in TAVR limit upside potential.

Key Takeaways

• 1.Reinstatement of Medtronic at Neutral with a $84 price target, citing a balanced risk/reward profile and valuation at a 10% discount to peers.
• 2.Cardiac Ablation Solutions (CAS) is the primary organic growth driver, expected to grow at a 28% CAGR through FY30 due to the Affera system.
• 3.Structural headwinds in the Surgical business and market share losses in TAVR and CRM act as significant offsets to newer growth drivers.

Table of Contents

• Medtronic Plc (MDT)
• Decomposing Key Growth Drivers
• CAS: Key Sustained Growth Driver
• TAVR: Modest Declines in Market Share Ahead and No Longer a Growth Driver
• Renal Denervation: Major Growth Potential but Building Market Will Take Time
• Altaviva: Launch Underway
• Hugo: Unproven and Unlikely to Stem Surgical Share Loss
• Rest of Business
• Cardiovascular Segment Outlook Considerations
• Neuroscience Segment Outlook Considerations
• Medical Surgical Outlook Considerations
• Earnings Analysis
• Valuation and Risks
• Disclosure Appendix

Document Preview

Page 1 of 5

Subscribe for full accessStart Free Trial