Medline (MDLN) is expected to see earnings growth reaccelerate in 2028 as automation drives improved operating leverage, RBC Capital Markets said Wednesday in a report.
The company, which makes and distributes medical supplies and surgical products, remains well-positioned to deliver durable high-single-digit to double-digit sales growth, though earnings are expected to reaccelerate later than anticipated, with 2028 now the target, RBC said.
"Redeploying capital into mergers and acquisitions and buybacks could drive shareholder value to bridge to 2028," the report said.
RBC views 2027 as an investment year as temporary cost pressures and platform investments weigh on earnings before interest, taxes, depreciation, and amortization.
Revenue in 2027 is expected at $33.9 billion, up from the previous estimate of $33.5 billion, while adjusted diluted EPS is projected at $1.46, down from the prior outlook of $1.47, RBC said.
RBC reiterated its outperform rating on Medline stock and its $46 price target.
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