Medtronic (MDT) Price Target Raised as PFA Technology Drives Q2 Revenue Gains

Medtronic plc (NYSE:MDT) ranks among the best slow growth stocks to invest in. Truist Securities increased its price target for Medtronic plc (NYSE:MDT) to $110 from $103 on November 20, while maintaining a Hold rating on the company’s shares. The gain comes after Medtronic’s fiscal second-quarter results, which revealed revenue growth led by the company’s Pulsed Field Ablation (PFA) technology.

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The company’s overall cardiac ablation solutions (CAS) division saw a 71% year-over-year organic rise in sales during the fiscal second quarter, owing to the technology. As PFA adoption continues, Medtronic’s CAS business is growing steadily: in the company’s last two fiscal quarters, the unit’s sales rose by about 50% and 30%.

Truist noted an operating margin miss and a modest rise in earnings per share expectations despite the revenue beat, attributing this to Medtronic’s increased reinvestment prior to several significant product releases. Although this investment is strategic, it is limiting the potential for upside growth and profit acceleration.

A prominent name in medical technology, Medtronic plc (NYSE:MDT) focuses on the creation, production, and marketing of device-based therapeutics. With notable breakthroughs in spine and minimally invasive treatments, the company ranks as a leader in robotic-assisted surgery technology.

While we acknowledge the potential of MDT to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than MDT and that has 100x upside potential, check out our report about this cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.