Analyst Patrick Wood of Morgan Stanley maintained a Buy rating on Stryker (SYK – Research Report), retaining the price target of $445.00.
Patrick Wood has given his Buy rating due to a combination of factors that indicate a positive outlook for Stryker. The company has reported strong performance in the first quarter, with robust demand for both base procedures and capital equipment, and no significant delays in deferrable procedures. This is attributed to an aging and active population, which continues to drive demand.
Additionally, Stryker is optimistic about the impact of site neutrality on the expansion of Ambulatory Surgery Centers (ASCs), which could benefit the company through financing arrangements tied to long-term volume commitments. Despite potential pricing pressures, Stryker believes that manufacturer pricing will remain stable. Furthermore, Stryker’s focus on mergers and acquisitions, particularly in areas like soft tissue robotics and vascular, along with strong product cycles, supports a favorable growth trajectory.
Wood covers the Healthcare sector, focusing on stocks such as Boston Scientific, Intuitive Surgical, and Stryker. According to TipRanks, Wood has an average return of -0.9% and a 46.99% success rate on recommended stocks.
In another report released yesterday, TD Cowen also maintained a Buy rating on the stock with a $435.00 price target.
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