Analysts initiate Medline with bullish ratings after blockbuster IPO
By Joel Jose
Jan 12 (Reuters) - Brokerages began coverage of Medline MDLN.O with largely bullish ratings on Monday, betting on supply chain strength and brand penetration, following the firm's upsized U.S. initial public offering in December - the biggest globally in 2025.
Shares of the medical supplies company, which last closed at $40.52 on Friday, have already surpassed the IPO price of $29 per share and analysts have bet on further outperformance.
"Medline is well placed to continue to take share in both core divisions and act as a partner to take cost out of the healthcare system," Morgan Stanley said as it started coverage with an "overweight" rating after the mandated quiet period.
Goldman Sachs, Morgan Stanley, BofA Securities and J.P. Morgan acted as lead bookrunning managers for Medline's offering.
Medline is one of the largest manufacturers and distributors of medical supplies, including surgical kits, gloves and protective apparel to hospitals globally.
Analysts said Medline's supply chain business is helping drive its brand product penetration, creating a growth cycle that benefits the company, its customers and patients.
"Medline's prime vendor strategy is the secret sauce," analysts at Piper Sandler noted.
The company was founded in 1966 by brothers Jon and Jim Mills. Medline first went public in 1972, but was taken private again by the brothers a few years later.
In 2021, a consortium of private equity firms comprising Blackstone BX.N, Carlyle CG.O and Hellman & Friedman bought Medline in a $34 billion deal.
After a three-year lull, the U.S. IPO market made a strong comeback in 2025 despite market volatility in April, fueled by President Donald Trump's sweeping tariffs and the longest-ever government shutdown that temporarily derailed activity.
The IPO momentum is expected to carry into 2026, underpinned by a pipeline of high-profile companies, such as Elon Musk's SpaceX, which will look to test investor appetite.
Following are the ratings and PTs on Medline's stock:
Brokerage | Rating | PT |
J.P. Morgan | Overweight | $50 |
Morgan Stanley | Overweight | $48 |
Baird | Outperform | $48 |
RBC | Outperform | $47 |
Piper Sandler | Overweight | $50 |
Jefferies | Buy | $50 |
Leerink Partners | Outperform | $48 |
BTIG | Buy | $50 |
Bernstein | Outperform | $49 |
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