MiniMed Shares Climb After Q1 Revenue Beat Prompts Analyst Upgrades

Shares of MiniMed Group Inc. (NASDAQ:MMED) gained 5.7% on Wednesday after the medical device company posted strong first-quarter results and lifted its financial outlook, prompting a series of positive revisions from Wall Street analysts.

Analysts Raise Price Targets

The upbeat earnings report and guidance led multiple investment firms to raise their price targets on MiniMed's stock, signaling increased confidence in the company's growth trajectory.

• BofA Securities increased its target to $28.00 from $24.00, maintaining a Buy rating.
• UBS also lifted its target to $28.00, up from $25.00, and reiterated its Buy rating.
• StoneX raised its price target significantly to $27.00 from $20.00, keeping a Buy rating.
• Wells Fargo boosted its target to $26.00 from $22.00, while maintaining an Overweight rating.

Strong Q1 Performance and Raised Guidance

MiniMed's first-quarter revenue reached $843 million, exceeding the consensus estimate of $827 million and representing 15.8% organic growth. The performance was driven by strong sales both domestically and abroad, with U.S. sales climbing 13.1% to $240 million and international sales growing 16.9% to $603 million.

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The company reported 34,000 new insulin pump starts during the quarter, with U.S. new starts growing by more than 20%. In light of the strong results, MiniMed raised its fiscal 2027 organic growth guidance to approximately 10.5% from 10%, implying revenue of about $3.43 billion. The company held its adjusted EBITDA margin target at 16%.

Product Pipeline and Context

MiniMed also announced progress in its product pipeline, having submitted its MiniMed Fit patch pump to the U.S. Food and Drug Administration (FDA) with a launch anticipated in summer 2027. Additionally, its MiniMed Flex device received a CE Mark in Europe ahead of schedule and is set for a November launch.

In a note, Wells Fargo analysts pointed out that an extra selling week in the quarter boosted growth figures. Excluding this, they estimated U.S. growth was in the high single-digits. However, the firm noted that U.S. growth likely accelerated toward the end of the quarter, driven by initial shipments of the new Flex device.