Medtronic: Buy The 3% Yield And Strong Free Cash Flow Growth

Summary Medtronic is initiated with a buy rating and a $106.33 price target, implying 17% upside and a 3% dividend yield. Q1 FY27 results exceeded expectations, with normalized revenue growth of 7% and notable strength in Cardiovascular and Neuroscience segments. Guidance was raised for revenue and EPS, but margin expansion is expected to materialize gradually as the product mix shifts toward higher-margin recurring revenues. The MiniMed separation enhances MDT's margin profile, while strong free cash flow and balance sheet flexibility support share repurchases and potential acquisitions. Looking for a helping hand in the market? Members of The Aerospace Forum get exclusive ideas and guidance to navigate any climate. Learn More » Morsa Images/DigitalVision via Getty Images As I am expanding coverage for names in the healthcare equipment industry, I am adding Medtronic plc ( MDT ) to my coverage with a buy rating. The company started FY27 with appreciable double-digit growth and This article was written by Dhierin Bechai 24.77K Followers Follow Dhierin-Perkash Bechai is an aerospace, defense and airline analyst. Dhierin runs the investing group The Aerospace Forum, whose goal is to discover investment opportunities in the aerospace, defense and airline industry. With a background in aerospace engineering, he provides analysis of a complex industry with significant growth prospects, and offers context to developments as they occur, describing how they might affect investment theses. His investing ideas are driven by data informed analysis. The investing group also provides direct access to data analytics monitors. Learn more. Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.