UBS Makes a Modest Target Increase on Medtronic (MDT), Keeps Neutral Rating

Medtronic plc (NYSE:MDT) is included among the 15 Best Wide Moat Dividend Stocks to Invest in.

On February 4, UBS raised its price recommendation on Medtronic plc (NYSE:MDT) to $104 from $103. The firm kept a Neutral rating on the stock.

A day earlier, Medtronic announced plans to acquire privately held CathWorks in a deal valued at up to $585 million. The move is aimed at strengthening its heart devices portfolio by adding a diagnostic tool that could improve how doctors assess coronary artery disease.

The acquisition gives Medtronic access to the CathWorks FFRangio System. The technology evaluates coronary artery disease without invasive procedures. This condition remains the most common heart issue, caused by plaque buildup that restricts blood flow to the heart muscle. For clinicians, tools like this can change how decisions get made in real time.

Heart devices already make up close to 40% of Medtronic’s total revenue. That includes pacemakers and its fast-growing Pulsed Field Ablation business. Adding a new diagnostic capability fits naturally into that mix, especially as treatment becomes more data-driven.

The company said the deal builds on a strategic partnership formed with CathWorks in 2022. This was not a sudden pivot. It looks more like the next step after working together and seeing what the technology can do in practice. The transaction still requires clearance from the U.S. Federal Trade Commission. Medtronic expects the deal to close by the end of its fiscal 2026.

Medtronic plc (NYSE:MDT) is based in Ireland and focuses on healthcare technology solutions.

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