One Analyst Is Bullish On Medtronic, Another Is Not Post Q1 Earnings

Citi says that Medtronic plc MDT delivered better-than-expected FY1Q23 results, reiterating FY23 guidance despite the ongoing litany of pressures impacting Medtech.
The analyst notes a shift in tone, with many of these headwinds still present but improving, including the availability of chips; patient volumes returning to pre-pandemic levels.
Citi maintains the Buy rating on MDT.
Related: Medtronic Q1 Earnings Within Expectation, Sees Higher Currency Headwind On FY23 Sales.
But Raymond James downgraded Medtronic to Market Perform from an Outperform rating.
The analyst notes that the valuation has been their core thesis this year, and this factor still holds, but the implied F2H23 ramp lowers confidence.
According to the analyst, supply chain dynamics have disrupted MDT’s growth more than peers, and they think MDT will take longer to regain momentum.
Raymond James is increasingly concerned that a higher level of investment is needed to drive a mid-single-digit revenue growth profile.
Price Action: MDT shares are down 0.91% at $89.41 on the last check Wednesday.

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