Benzinga - by Priya Nigam, Benzinga Staff Writer.
Shares of Stryker Corp (NYSE: SYK) continued to rise in early trading on Tuesday, after ending last week with gains.
While the company is more optimistic about margins, the stock is yet to reflect this due to “all the negative sentiment on medtech,” which offers “an opportunity now ahead of the 2024 upside,” according to BofA Securities.
The Stryker Analyst: Travis Steed upgraded the rating for Stryker from Neutral to Buy, while raising the price target from $310 to $315.
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The Stryker Thesis: The company has several product launches planned and these could boost its revenue growth by 100-200 basis points, Steed said in the upgrade note.
“Better pricing on new products/ortho and better supply chain/spot buying give us confidence in margins,” the analyst wrote.
Apart from Stryker’s new product “super-cycle,” the company has capital visibility “well into 2024,” and ortho is likely to be “higher for longer (multi-year backlog and better pricing),” he added.
SYK Price Action: Shares of Stryker had risen by 0.80% to $286.69 at the time of publication Tuesday.
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