Medtronic's Strong Pipeline and Revenue Growth Prospects Amid Tariff Challenges

Medtronic is expected to achieve 4.5-5.5% revenue growth and 0-5% EPS growth despite tariff pressures. Analyst Travis Steed from Bank of America Securities maintains a Buy rating and $100 price target, citing the company's robust pipeline and solid execution. Steed notes that good revenue growth is more significant than tariff impact, and Medtronic's strategic growth and pipeline development support the Buy rating.

Medtronic plc (MDT) is set to report its fourth-quarter and full-year fiscal 2025 results on May 21, 2025. Analysts expect the company to achieve revenue growth of 4.5-5.5% and EPS growth of 0-5% despite facing significant tariff pressures. Travis Steed from Bank of America Securities maintains a Buy rating and a $100 price target, highlighting the company's robust pipeline and solid execution.

Medtronic's earnings growth has been held back by headwinds such as rising costs and expenses due to inflation and global geopolitical pressure. The company's manufacturing presence in Mexico and Canada exposes it to cross-border tariff disruptions. Despite these challenges, Medtronic has consistently delivered mid-single-digit organic revenue growth over several quarters, driven by recent product launches and new approvals.

Analysts expect Medtronic's fiscal 2025 fourth-quarter revenues to reflect an unfavorable impact of $125 million to $175 million from currency translation. The company's strong liquidity position, with $7.92 billion in cash and cash equivalents as of Jan. 31, 2025, should enable it to meet its near-term debt obligations. Medtronic's times interest earned ratio of 7.9 indicates its ability to pay interest on its business debts on time.

Investors should closely monitor Medtronic's upcoming earnings release for insights into the company's exposure to tariff disruptions and the impact of rising costs and expenses. The company's performance in key segments, including Cardiac Pacing Therapies, Neuromodulation, and Diabetes, is expected to drive growth in the reported quarter.

References:
[1] https://finance.yahoo.com/news/medtronic-stock-buy-pre-q4-190000526.html
[2] https://www.nasdaq.com/articles/medtronic-mdt-rises-yet-lags-behind-market-some-facts-worth-knowing-2