Street View: Medtronic's spinoff plan a right step

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"