** Medical device maker Medtronic MDT.N on Wednesday announced plans to spin off its diabetes division, home to insulin pumps and wearable devices, into an independent company, while projecting lower-than-expected profits for 2026
** Median PT of 33 brokerages covering the stock is $95 - LSEG data
STILL A SAFE HAVEN
** Barclays ("overweight," PT: $109) says the spinoff plan looks positive, has potential to create shareholder value** The brokerage, however, expects spinoff to complete in 2027 vs co's expectations of completion within 18 months
** Citigroup ("buy," PT: $98) says "Medtronic continues to evolve, through new product introductions such as PFA and renal denervation, and now with the Diabetes spin"
** Morningstar (fair value: $112) believes this is a good time for Medtronic to separate its diabetes business, which has been growing robustly thanks to its 780g pump and improvements to its sensors** "We think it's been difficult for the diabetes unit to get credit for the progress it has made," says Morningstar
** Bernstein ("outperform," PT: $93) says "we like the Diabetes spin, and we would encourage management to consider even bolder portfolio moves over time"
(Reporting by Joel Jose in Bengaluru)
((joeljose@thomsonreuters.com))
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.