Medtronic shares collapsed due to terrible reports
2022.11.23 08:39
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Medtronic shares collapsed due to terrible reports
Budrigannews.com – Medtronic (NYSE:) has seen at least two sell-side analysts lower their ratings.stock on Wednesday after the disappointing company’s shares closed more than 5% lower yesterday.
Medtronic cut its entire year benefit direction to reflect large scale pressure and FX headwinds.Additionally, the business reported a 3.3% decrease in year-over-year revenue.
In a press release, Medtronic chairman and CEO Geoff Martha stated, “Revenue below our expectations this quarter drove by slower than anticipated procedure and supply recovery.”
Medtronic’s chief financial officer, Karen Parkhill, added:
“We continue to anticipate an acceleration in organic revenue growth, with the second half growing faster than the first.We are, however, lowering our revenue expectations for the remainder of the year due to the slower pace of market and supply recovery.
Citi and Oppenheimer downgraded Medtronic stock following yesterday’s news, causing shares to fall nearly 1 percent today.
With a price target of $85 per share, Citi analysts dropped from $108 to Neutral from Buy.
In a note indicating a downgrade, they stated, “It is becoming harder for us to support the stock.”
This was one of those quarters in which investors and we questioned Medtronic’s capacity to sustainably increase MSD revenue.The analysts added, “The timing to resolution is less certain, but we believe that management has a handle on the headwinds negatively impacting FY2Q23 resulting in the FY23 guide down.”
With an $85 price target, Oppenheimer analysts also switched from Outperform to Market Perform.
They wrote, “We step to the sideline with visibility on near-term fundamentals still low, we continue to see solid long-term pipeline opportunities and valuation is supportive.”
The bears are now anticipating a move toward $72.13—a multi-year low—with Medtronic shares trading below $80 each.
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