MiniMed Group (NASDAQ:MMED) saw its share price increase by 10.66 percent on Tuesday to finish at $22.42 apiece after reporting strong revenues and earning a price target upgrade from an investment firm.
In an earnings call on the same day, the company said that it was able to grow its revenues in the first quarter of fiscal year 2027 by 16.6 percent to $843 million from $723 million in the same period last year, supported by strong sales from the US and international operations.
MiniMed Group (NASDAQ:MMED) has yet to earn profits during the period, but it was able to wipe out a $19 million attributable net loss recorded in the same period last year.
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Higher Price Target
Following the results, investment firm BTIG raised its price target for the company to $28 from $25 previously, while maintaining its buy recommendation.
BTIG said that the coverage reflected MiniMed’s beating of consensus estimates of $826.8 million.
Meanwhile, another investment firm, StoneX Group, also reiterated its buy call and $20 price target for the stock prior to its earnings release, saying that the coverage reflected its optimism about a strong quarter due to pent-up demand as users delayed purchasing a new pump in anticipation of the Flex.
StoneX also targeted MiniMed Group (NASDAQ:MMED) to post an adjusted EBITDA of $117 million on revenues of $829 million.
FY27 Outlook
Encouraged by the results, the medical technology company raised its organic revenue growth for full fiscal year 2027 to 10.5 percent from 10 percent previously, which includes the approximate 1 to 1.5 percent benefit from the extra week in the first quarter of the year.
Adjusted EBITDA margin was reaffirmed at 16 percent.
Hedge Fund Conviction Weakens
Institutional sentiment ended mixed for MiniMed Group (NASDAQ:MMED) in the second quarter of the year, as evidenced by the lower committed capital despite an increase in hedge fund holders.
Data from Insider Monkey showed that 26 hedge funds held positions in the stock during the period, up from 22 previously. However, their combined holdings fell by 18 percent to $237.55 million from $290.58 million quarter-on-quarter.
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