Raymond James downgrades Medtronic to market perform on doubts around revenue growth

Raymond James on Wednesday cut its rating on medical products company Medtronic Plc MDT, -3.08% to market perform from outperform amid doubts about its implied revenue increases in the second half of fiscal 2023. Analyst Jayson Bedford said he’s less confident in his performance estimates for the company. “We fully acknowledge that sentiment is low, but we expect investor skepticism around the revenue ramp to keep the stock range-bound,” Bedford said. “Supply chain dynamics have disrupted MDT’s growth more so than peers, and our concern is that it will take longer for MDT to regain momentum.” He said he’s also concerned that a higher level of investment may be needed to achieve a mid single-digit revenue growth profile for the company. Shares of Medtronic fell 0.6% in pre-market trades.