MDT - Medtronic: Net Income Could Fall $3.38B The Stock Would Still Be Undervalued
2024-05-27 10:18:00 ET
Summary
- Medtronic's fair price estimate is $142.20, indicating a 73.3% upside from $82.07, with potential annual returns of 28.8% through 2029.
- FQ4 2024 earnings exceeded expectations with an EPS of $1.46 and revenue of $8.59 billion.
- Medtronic focuses on innovation through AI, data analytics, and new partnerships, enhancing competitiveness and product offerings.
- Leading the medical devices market with a 15.59% share, Medtronic is set for growth in cardiovascular, medical-surgical, neuroscience, and diabetes segments.
- Despite geopolitical risks, Medtronic's 3.24% dividend yield, and its huge safety margin support a "strong-buy" rating.
Thesis
In my previous article about Medtronic plc ( MDT ), I rated the stock as a Strong buy, since my estimates (which were lower than the average consensus) already estimated an upside of 46.9% and annual returns of 21.2% throughout 2029. My fair price estimate was $126.09 and my future price for 2029 was $194.88.
Medtronic released Q4 2024 earnings on May 23 . The company reported a non-GAAP EPS of $1.46 which beat EPS estimates by 0.68%, and a revenue of $8.59B which beat the consensus by 1.77%....
Medtronic: Net Income Could Fall $3.38B, The Stock Would Still Be Undervalued