- Citi says that Medtronic plc (NYSE:MDT) delivered better-than-expected FY1Q23 results, reiterating FY23 guidance despite the ongoing litany of pressures impacting Medtech.
- The analyst notes a shift in tone, with many of these headwinds still present but improving, including the availability of chips; patient volumes returning to pre-pandemic levels.
- Citi maintains the Buy rating on MDT.
- Related: Medtronic Q1 Earnings Within Expectation, Sees Higher Currency Headwind On FY23 Sales.
- But Raymond James downgraded Medtronic to Market Perform from an Outperform rating.
- The analyst notes that the valuation has been their core thesis this year, and this factor still holds, but the implied F2H23 ramp lowers confidence.
- According to the analyst, supply chain dynamics have disrupted MDT’s growth more than peers, and they think MDT will take longer to regain momentum.
- Raymond James is increasingly concerned that a higher level of investment is needed to drive a mid-single-digit revenue growth profile.
- Price Action: MDT shares are down 0.91% at $89.41 on the last check Wednesday.
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