A blast of analyst price target cuts hit (NYSE: MDT) stock on Friday, one trading session after the company published its latest set of quarterly earnings. Both the market and several prognosticators were unimpressed with these, despite the beats on both the top and bottom lines. As a result, Medtronic's shares lost 2.5% of their value; this compared quite unfavorably to the 1.3% gain of the S 500 index on the day.
Although Medtronic's fourth quarter of fiscal 2023 beats were encouraging, investors tend to look forward and not back when evaluating stocks. And that was a problem, as the specialty healthcare company's guidance was found wanting.
Investors reacted by trading out of the stock, while the more bearish analysts shaved their price targets. One cutter was Truist Securities' Richard Newitter, who trimmed $3 off his estimation for a new level of $90 per share. Newitter maintained his buy recommendation on the stock as he did so.
Source Fool.com