MiniMed Analysts Lift Targets as $90 Million Cash Outflow Persists

Nine analysts raised their price targets on MiniMed in early September after the diabetes-device maker reported first-quarter sales of $843 million, up 16.6% from a year earlier. The stock’s cash-flow figures offered a less tidy picture: free cash flow was negative $90 million.

The target increases followed MiniMed’s first quarter as a standalone public company. Bank of America raised its target to $28 from $24, while UBS moved to $28 from $25 and Wells Fargo to $26 from $22. The firms kept their positive ratings, according to analyst-action records.

Sales growth came from both regions. U.S. revenue rose 13.1% to $240 million, while international sales increased 18.1% to $603 million. MiniMed said new U.S. pump sales grew more than 20%, helped by launches of its Flex pump and newer sensors.

But the reported growth included an extra fiscal-calendar week, which added about 4 to 6 percentage points to the quarter’s growth rate. MiniMed raised its fiscal 2027 organic growth forecast to about 10.5% from 10%, including a smaller 1 to 1.5 percentage-point benefit from that extra week.

The cash-flow deficit also reflects the cost of separating from former parent Medtronic. MiniMed said $111 million went to separation and stand-up work during the quarter; excluding those costs, it would have generated $21 million in positive free cash flow.

That adjustment is not yet a clean measure of future performance. MiniMed had exited 17 of 160 transition-service agreements with Medtronic by quarter-end, and executives said most remaining exits are expected in calendar 2027. The company ended July with $207 million in cash, no debt and an unused $500 million credit line.

Investors will be watching whether product launches sustain sales once the calendar boost fades, and whether cash generation improves as separation expenses decline. MiniMed expects its Fit patch pump to launch in the U.S. in summer 2027; its Vivera algorithm is targeted for the second half of that year.