MiniMed Group (NASDAQ:MMED) has been initiated with a ‘Buy’ rating by Bank of America, reflecting the view that the company is approaching a key inflection point following its recent separation from Medtronic.
The analysts gave the company, which specializes in developing and manufacturing technology for diabetes management, a $27 price target, implying upside from current levels of about $14.
The initiation is grounded in expectations that MiniMed’s pipeline and scale can support accelerating growth over the next several years, with the firm suggesting that current valuation levels do not fully capture the company’s longer-term revenue trajectory or free cash flow potential.
MiniMed is positioned as a large-scale, fully integrated diabetes technology company offering both insulin pumps and continuous glucose monitoring systems, allowing it to target insulin-intensive patients with a comprehensive solution. This integrated model differentiates it from peers such as Insulet Corporation and Dexcom, which tend to specialize in either pumps or CGM.
Bank of America highlights that this dual offering can translate into higher revenue per patient and improved retention, with annual revenue per patient estimated at approximately $6,000 across hardware, consumables, and monitoring components.
The firm forecasts revenue growth accelerating from around 8% in fiscal 2026 to approximately 11% by 2030, implying a compound annual growth rate near 10%.
This outlook is supported by increasing CGM adoption, rising attachment rates, and a product pipeline that includes next-generation systems such as Flex and Fit, as well as the Instinct CGM and Vivera algorithm. Improvements in CGM attachment rates are expected to be a meaningful driver of growth, alongside incremental contributions from smart multiple daily injection users and continued demand for durable pumps and consumables.
On valuation, the bank's $27 price objective is based on a 2x enterprise value to estimated 2027 sales multiple, representing a premium to lower-end peers due to MiniMed’s scale and margin potential, while still reflecting a discount to higher-multiple companies with more recurring revenue exposure.
At current levels, the company is trading at roughly 1x enterprise value (EV) to 2027 sales, which the firm views as an attractive entry point, particularly when considering normalized free cash flow potential toward the end of the decade.
Bank of America notes that the investment case depends on consistent execution, particularly with respect to pipeline delivery and market adoption, and identifies risks including increased competition, potential delays in product development, residual entanglement with Medtronic, and possible changes to pricing or reimbursement dynamics.