Medtronic to Acquire CathWorks for Up to $585 Million
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 5d ago
0mins
Should l Buy MDT?
Source: Benzinga
- Acquisition Scale: Medtronic announced its intention to acquire Israeli medical device company CathWorks for up to $585 million, with potential undisclosed earn-out payments, indicating a strategic expansion into digital health.
- Technological Integration: CathWorks focuses on coronary digital health, and its FFRangio system utilizes AI and advanced computational science to deliver FFR values across the entire coronary tree, aiding physicians in accurately identifying ischemic lesions and optimizing patient revascularization treatments.
- Market Outlook: This acquisition follows a strategic partnership agreement with CathWorks in 2022, highlighting Medtronic's further penetration into the U.S., European, and Japanese markets, which is expected to enhance its competitive position in the field of coronary physiology.
- Financial Impact Assessment: While the acquisition is expected to have an immaterial effect on Medtronic's GAAP and adjusted earnings per share for fiscal year 2027, it may yield neutral to accretive effects in the long term, reflecting the company's confidence in future growth.
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Analyst Views on MDT
Wall Street analysts forecast MDT stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for MDT is 111.76 USD with a low forecast of 102.00 USD and a high forecast of 120.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
20 Analyst Rating
11 Buy
9 Hold
0 Sell
Moderate Buy
Current: 102.950
Low
102.00
Averages
111.76
High
120.00
Current: 102.950
Low
102.00
Averages
111.76
High
120.00
About MDT
Medtronic Public Limited Company is an Ireland-based company, which provides healthcare technology solutions. The Company’s products category includes Advanced Surgical Technology; Cardiac Rhythm; Cardiovascular; Digestive & Gastrointestinal; Ear, Nose & Throat; General Surgery; Gynecological; Neurological; Oral & Maxillofacial; Patient Monitoring; Renal Care; Respiratory; Spinal & Orthopedic; Surgical Navigation & Imaging; Urological; Product Manuals; Product Ordering & Inquiries; and Product Performance & Advisories. Its products include Cardiac Implantable Electronic Device (CIED) Stabilization, Aortic Stent Graft Products, CareLink Personal Therapy Management Software, CareLink Pro Therapy Management Software. Its services and solutions include Ambulatory Surgery Center Resources, Care Management Services, Digital Connectivity Information Technology (IT) Support, Equipment Services and Support, Innovation Lab, Medtronic Healthcare Consulting, and Office-Based Sinus Surgery.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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