Stryker (SYK) is one of the leading medical device companies in the US. It’s the second-largest player in the orthopedics device market. For a brief overview of the company, read A Must-Read Company Overview of Stryker.
Let’s look at Wall Street analysts’ recommendations and target prices for Stryker in the next 12 months. In a Reuters survey of 28 brokerage firms, ~61% of the analysts rated Stryker as a “buy,” 29% rated it as a “hold,” and ~11% rated it as a “sell.”
The above chart shows a recommendation summary for Stryker over the next year. As of July 17, 2017, the stock’s consensus 12-month target price is $145.3, which amounts to an approximately -0.08% return potential based on Stryker’s closing price of $145.4 on July 14, 2017.
Peers Medtronic (MDT), Abbott Laboratories (ABT), and Zimmer Biomet Holdings (ZBH) have average broker target prices of $92.4, $51.4, and $136.4, respectively. These figures imply returns of 7.7%, 5.4%, and 3.9%, respectively, in the next 12 months.
Upgrades and downgrades
On July 10, 2017, Morgan Stanley increased its target price on Stryker from $155 to $160. In June, Cantor Fitzgerald initiated coverage on Stryker with a “neutral” rating. Goldman Sachs also initiated Stryker coverage with a “neutral” rating in May 2017 due to the company’s strong fundamentals. However, the company doesn’t have much upside opportunity. Its valuation already soared in the last few years.
In June 2017, Citi raised its target price on Stryker from $114 to $125. However, the company maintained its “sell” rating on Stryker stock.
In this series, we’ll take a look at Stryker’s recent launches, partnerships, and stock price performance. We’ll discuss the company’s recent acquisition of Novadaq Technologies. We’ll also discuss the company’s recent win in a litigation battle.
Investors can gain exposure to Stryker by investing in the iShares Russell 1000 Growth ETF (IWF), which invests 0.42% of its portfolio in Stryker.
In the next part, let’s discuss Stryker’s recent Novadaq acquisition.