In a report released yesterday, Caitlin Cronin from Canaccord Genuity maintained a Buy rating on Stryker (SYK – Research Report), with a price target of $435.00.
Caitlin Cronin has given her Buy rating due to a combination of factors that highlight Stryker’s strategic decisions aimed at fostering growth. The recent sale of its US spine business to the Viscogliosi Brothers is a significant move, allowing Stryker to focus on higher growth areas where it holds a competitive advantage. This divestiture is seen as a positive step, as the spine division was not contributing to high growth, and Stryker is now better positioned to invest in innovation in more promising segments.
Cronin’s analysis also points out that the partnership with VB Spine, which will have access to Stryker’s enabling technology, is a strategic move that could yield long-term benefits. The decision to divest the spine business aligns with Stryker’s broader strategy of honing its portfolio towards areas with higher growth potential. This strategic realignment, combined with Stryker’s demonstrated ability to achieve double-digit growth last year and expected high single-digit growth this year, underpins the Buy rating recommendation.
In another report released on March 21, Needham also maintained a Buy rating on the stock with a $442.00 price target.
Based on the recent corporate insider activity of 68 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of SYK in relation to earlier this year.