Barclays reinstated coverage of Medtronic with an Overweight rating and a $116 price target ahead of the company's fiscal third-quarter results, citing strong growth in heart rhythm devices. The brokerage expects solid expansion in Medtronic's electrophysiology business, driven by cardiac ablation systems used to treat atrial fibrillation.

Barclays forecasts growth of 60% to 70% in the segment, slightly below the 71% reported in the prior quarter but well above earlier levels this year. The firm views Medtronic's Affera mapping platform and renal denervation therapy as key long-term drivers, with momentum likely to continue through fiscal 2026 and 2027. While Medtronic's share in atrial fibrillation ablation is expected to improve, gains may come at a measured pace as the company builds out field support and new treatment centers.

The firm noted that Medtronic's EP trends could have implications for Boston Scientific, a major competitor in the market. If third-quarter growth lands within the expected range and market share remains stable, that would likely be viewed as a constructive signal for Boston Scientific as well. Barclays set its $116 price target based on a 14x multiple of projected next-12-month EBITDA of about $11.8 billion, in line with the stock's recent trading range.