MDT - Medtronic Stock Looks Promising Before Fiscal Q4 2024 Release

2024-05-13 15:51:00 ET

Summary

• Medtronic is a leading global medical technology company with diversified revenue streams across multiple segments.
• Medtronic has made significant strides in bolstering its product portfolio and strategic initiatives, positioning it for long-term growth.
• According to my DCF model, MDT is currently undervalued by around 26.4%. The development of EV/EBITDA confirms the result of my intrinsic value calculation.
• I think that buying MDT stock ahead of the report for fiscal Q4 FY2024 may be risky, but in the long term, my bullish bias should be justified.

Intro & Thesis

I initiated coverage of Medtronic plc ( MDT ) stock in October 2023 , with only one subsequent update on January 10, 2024 . Up to that point, my rating remained bullish, but unfortunately, following the latest update, the stock has shown underperformance relative to the broader market, the S&P 500 ( SP500 ) ( SPX ) index:

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