On Tuesday, William Blair upgraded Medtronic Plc (NYSE:MDT), citing several new and ramping launches.
William Blair upgraded from Market Perform to Outperform. Analyst Brandon Vazquez wrote that the Market Perform rating hinged on a business that was too large and not differentiated enough to durably hit its goals of delivering consistent high-single-digit EPS growth.
Medtronic is ramping up several new products, with many more in the pipeline.
Medtronic’s Transformation: A Turning Point Ahead
If Medtronic is truly positioned for high-single-digit EPS growth, then the company can deliver low-double-digit equity return when factoring in a 2.9% dividend yield.
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“At a valuation of roughly 16 times calendar 2026 EPS, the stock is trading in line to slightly below large-cap medtech peers, suggesting a favorable risk/reward for an improving setup,” Vazquez added.
The Hugo system has been long-awaited for almost a decade now and has a more tangible timeline, recently announcing FDA approval for urologic surgical procedures in the U.S.
The update could be an inflection point in the company’s surgical segment, which accounted for 19% of revenues in 2025 and has been growing slower than the corporate average over the past five years.
William Blair highlighted that the Symplicity Spyral RDN system reached a major commercialization inflection in late 2025 with final CMS national coverage. Management considers the decision more favorable than the draft and adequate to support broad patient access.
Investors should expect a measured revenue ramp, reflecting a long but nuanced clinical evidence base. Even so, CMS reimbursement meaningfully improves visibility and positions RDN to begin contributing to the P&L.
Why Investors Should Bet On Medtronic Now
Pulsed Field Ablation (PFA) remains one of Medtronic’s fastest-growing businesses and a key counterbalance to slower growth in legacy pacing and defibrillation markets.
The PFA platform strengthens Medtronic’s competitive position in atrial fibrillation by supporting share stabilization with potential for modest gains, increasing exposure to a large and expanding AF ablation market as adoption rises, and offering a clear margin upside as volumes scale.
“We view the diabetes spin-off as compelling for both parties, allowing the newly formed MiniMed to focus on becoming a staple in the diabetes market and Medtronic to allocate resources toward the aforementioned growth drivers,” analyst Vazquez wrote in an investor note on Tuesday.
MDT Price Action: Medtronic shares were up 2.91% at $98.05 at the time of publication on Tuesday, according to Benzinga Pro data.
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