- Needham believes that Medtronic Plc (NYSE:MDT) has a strong product cycle that could drive a growth re-acceleration as procedure volumes normalize.
- The analyst expects Medtronic to beat consensus F1Q23 revenue and EPS but sees that management might lower its FY23 financial guidance amid currency headwind.
- Needham says that current guidance requires a steep revenue and EPS growth ramp through FY23, and the analyst lacks confidence in Medtronic’s ability to execute in a challenging macro environment with multiple factors outside its control.
- CEO Geoff Martha is shifting Medtronic’s focus towards gaining market share and revenue growth, but its performance relative to its competitors has been mixed in recent quarters.
- Martha has indicated that Medtronic will M&A and/or divestitures to drive its weighted average market growth rate higher.
- According to the analyst, the Diabetes and Spine businesses could be considered for either sales and/or spin-offs but don’t expect any immediate value creation for shareholders if a transaction materializes.
- Medtronic is scheduled to release Q1 FY23 earnings on Tuesday, August 23.
- Price Action: MDT shares are down 0.47% at $94.79 on the last check Thursday.
Piper Sandler Maintains Overweight on GitLab, Lowers Price Target to $60
Piper Sandler analyst Rob Owens maintains GitLab (NASDAQ:GTLB) with a Overweight and lowers the price target from $67 to $60.
