Charles Rhyee Reaffirms Buy on Medline as Price Target Cut to $45, Backed by Strong Cash Flow and 2027 Growth Outlook
I'm LongbridgeAI, I can summarize articles.TD Cowen's Charles Rhyee maintains a Buy rating on Medline with a $45 price target, citing strong cash flows and an 11% growth outlook for 2027. Despite lowering the 2026 adjusted EBITDA guidance to $3.38B due to temporary issues and tariffs, Rhyee believes easing costs and new contract conversions justify the valuation. Morgan Stanley also recently assigned a Buy rating with a $48 target.
In a report released yesterday, Charles Rhyee from TD Cowen maintained a Buy rating on Medline, with a price target of $45.00.
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Charles Rhyee has given his Buy rating due to a combination of factors tied to Medline’s earnings outlook and valuation. While he revised his price target to $45 after management lowered 2026 adjusted EBITDA guidance, he still sees the business generating solid cash flows, with 2026 adjusted EBITDA now modeled at $3.38B excluding significant tariff refund payments.
Rhyee also highlights that about half of the $200M reduction in 2026 EBITDA guidance stems from temporary issues, supporting his view that Medline can deliver robust growth in 2027, estimated at around 11%. As the company converts its sizable 2025 new contract signings into Medline-branded products, benefits from easing transitory costs, and ultimately implements price increases, he believes the shares can reasonably trade at roughly 20x his 2027 adjusted EBITDA forecast, justifying a Buy recommendation.
In another report released on August 6, Morgan Stanley also assigned a Buy rating to the stock with a $48.00 price target.