Medtronic (MDT) Shares Soar 1.72% to April 2025 High

Medtronic (MDT) shares surged 0.74% today, reaching their highest level since April 2025 with an intraday gain of 1.72%.

The strategy of buying MDT shares after they reached a recent high and holding for 1 week showed poor performance over the past 5 years. The annualized return was -1.7%, significantly underperforming the market. This indicates that relying solely on recent highs as a buying trigger and holding for a short duration is not a reliable strategy for MDT.

Analysts have set an average target price of $95.43 for Medtronic, indicating a potential upside of 9.35%. The consensus among analysts includes 17 buy ratings, 13 hold ratings, and only 2 sell ratings, reflecting a largely favorable outlook for the company. Technical indicators such as the Relative Strength Index and MACD suggest that the stock may be undervalued and poised for bullish momentum.

Medtronic's strategic decision to spin off its diabetes business, despite it being the smallest segment, is expected to impact investor perceptions and the company's growth strategy. This move could potentially enhance the company's focus on its core businesses and drive future growth.

The company's estimated fair value is US$101 based on the 2 Stage Free Cash Flow to Equity model, with a forward P/E ratio of 14.54 indicating expectations for steady earnings growth. Medtronic's strong free cash flow supports a healthy dividend yield, further bolstering investor confidence in the company's financial performance.