WEBULL
WebtradeDownload

Medtronic (MDT) Could Be 24% Undervalued As CPT Code Wins Support Growth

Simply Wall St · 2d ago

Medtronic (MDT) just cleared an important regulatory hurdle, with the American Medical Association approving permanent Category I CPT codes for its Altaviva neuromodulation implant and Symplicity Spyral renal denervation system.

Medtronic shares have been choppy around the latest announcements, with the 1 month share price return down 7.52% and the year to date share price return down 9.33%. Even though the 3 year total shareholder return is up 26.12% and the 1 year total shareholder return is only slightly lower at 8.50% in decline, this suggests long term holders have still seen gains while near term momentum has cooled as investors weigh fresh regulatory wins like Altaviva and Symplicity Spyral against broader expectations for the business.

Spot fresh regulatory stories like Medtronic’s by scanning our curated list of 34 healthcare AI stocks. These companies are turning new approvals and advanced therapies into potential share price catalysts.

Fresh CPT wins, steady revenue and profit growth, and a share price at US$87.09 that sits below some intrinsic value estimates put Medtronic at an interesting crossroads. Is it better to step in now, or wait for a cheaper entry?

Most Popular Narrative: 24.5% Undervalued

Medtronic’s most followed narrative compares a fair value estimate of $115.38 with the last close at $87.09, leaving a sizable valuation gap for investors to consider.

"The phrase "inflection point" or its equivalents have appeared in Medtronic's transcript language for several quarters. This quarter, management moved to clarify the claim. Martha's closing remarks to the analyst who asked whether the "mid-single-digit revenue grower, high single-digit EPS" characterization of Medtronic still holds: "Clearly, we have aspirations for higher growth than we've done historically... we're not satisfied with that." The framing is not a promise of specific targets, Investor Day in December is where those will be disclosed, but it is the first time management has used analyst-facing language to explicitly distance the company from its own historical growth ceiling.

See why 8 investors see Medtronic as 25% undervalued.

Result: Fair Value of $115.38 (UNDERVALUED)

Still, the Medtronic story can wobble if high expectations around Q1 organic growth or key launches like Hugo and structural heart fail to match future delivery.

Find out about the key risks to this Medtronic narrative.

Next Steps

If the mixed sentiment around Medtronic has you on the fence, check the numbers yourself, move quickly, and size up the 6 key rewards.

Looking for more Medtronic style investment ideas?

Do not stop at Medtronic. Fresh opportunities keep forming, and a quick scan across high quality screeners can reveal setups you would not spot by hand.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.