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The medical device company beat the EPS consensus by 3 cents, coming in at $1.32, and reported revenue of $7.85 billion, below expectations of $7.98 billion.
The news has seen Needham & Company analyst Michael Matson lower the price target for Medtronic shares to $145 from $152, maintaining a buy rating.
Matson told investors that “while management provided F3Q22 guidance that was below consensus,” they believe it could prove conservative.
The analyst also noted that two of Medtronic’s major pipeline projects, renal denervation, and Hugo robot, have been delayed.
However, Needham explained that Medtronic gained market share in most of its business units, and while maintaining its buy rating, the lower price target reflects MDT’s slower FY22 growth.
Elsewhere, it was reported that Piper Sandler remains cautiously optimistic on Medtronic, saying that its organic revenue growth was mainly due to Covid-related hospital staffing shortages and a slowdown in surgical volumes.
