Medtronic plc (NYSE:MDT) is one of the undervalued large cap stocks to buy. On April 6, Argus Research analyst David Toung cut his price target on Medtronic plc (NYSE:MDT) to $115 from $125 and maintained a Buy rating.
Toung’s bullishness on the stock despite the target cut stems from Medtronic’s structural transformation. This is in reference to the fact that the company is spinning off its Diabetes business, and is instead focusing on the Cardiovascular, Neuroscience, and Medical Surgical segments. Together, these segments address a combined global market of nearly $100 billion, noted Toung.
The analyst also highlighted Elliott Management’s involvement. He sees the investor’s engagement agreement and the appointment of two independent directors as catalysts to push management toward greater growth discipline and capital efficiency.
On the product side, Toung pointed to three key technology bets Medtronic is making with its redeployed capital. They are a soft-tissue robotic surgery platform, pulsed field ablation products, and a renal denervation device for treating hypertension. All of these represent high-growth, high-margin opportunities in the medical device space, Toung noted.
Separately, on March 27, Medtronic said the FDA cleared the Stealth AXiS surgical system for cranial and ENT procedures. The FDA had also, on March 23, approved an expanded indication for the OmniaSecure defibrillation lead, which is the first such lead cleared for placement in the left bundle branch area for conduction system pacing.
Medtronic plc (NYSE:MDT) is a medical technology company. It develops and manufactures devices and therapies for the treatment of chronic diseases. Its products include pacemakers, defibrillators, insulin pumps, heart valves, stents, surgical tools, and neurostimulation systems used across cardiovascular, neuroscience, and medical-surgical fields.
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