Analyst Recommendations for Stryker: Most Say ‘Buy’
Let’s look at Wall Street analysts’ recommendations and target prices for the next 12 months for Stryker (SYK), the leading orthopedics device manufacturer in the United States. In a Reuters survey of 27 brokerage companies, about 63.0% of analysts have rated Stryker a “buy,” and 26.0% have rated it a “hold.” About 11.0% have rated it a “sell.”
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A recommendation summary for Stryker over the next 12 months is in the above table. The consensus 12-month target price is $144.30, a ~1.7% return potential. Stryker was trading at $141.20 on June 15, 2017.
According to the latest analysts’ recommendations, the lowest one-year target price for Stryker is $88, implying a -37.7% return potential over the next 12 months. On the other hand, Stryker’s highest one-year target price is $140, implying a -0.85% return potential over the next 12 months. It’s worth noting that the highest target price is below the company’s current trading price. So Stryker is expected to correct its price over the next 12 months.
RBC Capital Markets gave Stryker an “outperform” rating, and Goldman Sachs gave it a “neutral” rating. Nomura also gave Stryker a “neutral” rating.
Peers Zimmer Biomet Holdings (ZBH), Medtronic (MDT), and Abbott Laboratories (ABT) have average broker target prices of $131.70, $91.40, and $48.50, respectively. These figures imply returns of 4.5%, 4.0%, and 0.80%, respectively, in the next 12 months.
ETFs with exposure to Stryker
If you’re interested in gaining focused exposure to Stryker, you can consider investing in dividend ETFs such as the Vanguard Dividend Appreciation ETF (VIG). Stryker accounts for ~1.4% of VIG’s total holdings. VIG tracks the NASDAQ US Dividend Achievers Select Index. It’s a market cap–weighted index that consists of US companies with increasing dividend payment histories of at least ten consecutive years.
You can also get focused exposure to the medical device industry through the iShares US Medical Devices (IHI). IHI has 5.4% of its total holdings in Stryker. IHI tracks the Dow Jones U.S. Select Medical Equipment Index.