Medline (MDLN) is poised to sustain high-single digit organic growth in the longer term, driven by market share gains and strong demand for medical-surgical products, BofA Securities said in a Monday note.
The brokerage said the company has ramped up its merger and acquisition transactions and this is expected to continue and further accelerate its growth.
Medline grew its total revenue 14% from 2012 through 2025, driven by 5% market growth, 7.5% organic share gains and 1.5% from M&A. Its scale and manufacturing capabilities allow it to sell private-label products cheaper than competitors, supporting share gains.
Tariffs are expected to hit earnings before interest, taxes, depreciation and amortization by roughly $525 million through 2026. The investment firm sees this as a one-time impact and said the growth is expected to accelerate in 2027 and beyond.
BofA initiated coverage on Medline with a buy rating and $50 price objective.
Shares of Medline were up 4.5% in recent trading.
Price: 42.00, Change: +1.48, Percent Change: +3.65
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