Barclays has reinstated coverage of Medtronic with an Overweight recommendation and set a $116 price target as the medical-device company approaches its fiscal third-quarter results. The brokerage highlighted accelerating momentum in Medtronic’s heart rhythm device business, with the electrophysiology, or EP, segment singled out for particularly strong expansion.
The firm expects the EP franchise to grow by 60% to 70%, driven primarily by Medtronic’s cardiac ablation systems used to treat atrial fibrillation. Barclays noted that this projected expansion is slightly below the 71% growth reported in the prior quarter but remains markedly above earlier levels seen this year.
Barclays identified the Affera mapping platform and renal denervation therapy as important long-term contributors to Medtronic’s growth profile, and the brokerage anticipates continued momentum through fiscal 2026 and 2027. While the firm expects Medtronic’s share in atrial fibrillation ablation to improve over time, it cautioned that share gains are likely to materialize at a measured pace while Medtronic scales field support and establishes new treatment centers.
The brokerage also noted that trends in Medtronic’s EP business could carry implications for competitors in the market, specifically Boston Scientific. Barclays said that if third-quarter growth lands within its forecasted range and market share remains steady, those outcomes would likely be interpreted as a constructive signal for Boston Scientific as well.
Barclays derived its $116 price target by applying a 14x multiple to projected next-12-month EBITDA of approximately $11.8 billion, a valuation stance the firm said aligns with the stock’s recent trading range.
For the upcoming earnings call, Barclays expects management to provide updates across several strategic areas: the cardiac ablation portfolio, progress in the U.S. rollout of the Hugo surgical robot, developments in renal denervation following a Medicare coverage decision last year, plans for margin expansion, and capital allocation priorities including investment, dividends and share buybacks.
The brokerage’s reinstatement and valuation framework position Medtronic as a name to watch through the near-term reporting cycle, with product adoption in electrophysiology and execution on newer therapies central to the outlook.