Stryker: Analysts’ Recommendations before Its 3Q17 Earnings

Analysts’ recommendations for Stryker

Stryker (SYK), the second-largest orthopedic device developer, is set to announce its 3Q17 earnings results on October 26, 2017. Recently, the company’s stock recovered significantly from a mild setback due to certain voluntary product recalls. The event caused the company’s stock to fall. To learn more, read Stryker Stock Falls Due to the Impact of the Sage Products Recall. Since then, Stryker stock has continued to trend higher. Let’s take a look at analysts’ ratings, recommendations, and target prices for Stryker stock in the next 12 months.

According to the latest recommendations received by 28 brokerage companies in a Reuters survey, ~61% (or 17) of the analysts gave a “buy” on Stryker stock, ~32% (or nine) analysts gave a “hold,” and two analysts gave a “sell.”

Stryker: Analysts’ Recommendations before Its 3Q17 Earnings

In the chart above, you can see the recommendation summary for Stryker stock. As of October 23, 2017, analysts’ consensus target price for Stryker stock in the next 12 months is $151.95. It has a 12-month return potential of 1% on the stock—compared to the stock’s closing price of $150.49 on October 20. 2017.

The iShares Edge MSCI Min Vol USA ETF (USMV) has ~1.5% of its total holdings in Stryker. Investors could consider USMV to get diversified exposure to Stryker.

Analysts’ target prices and revised recommendations

On September 28, Piper Jaffray maintained its “buy” rating on the stock. The company’s target price for Stryker stock is $148, which implies a 12-month potential return of -1.7%. In a report disclosed on September 25, 2017, Canaccord Genuity also maintained its “buy” rating on Stryker stock with a target price of $155.

As of October 23, 2017, Stryker’s peers Medtronic (MDT), Smith & Nephew (SNN), and Zimmer Biomet Holdings (ZBH) have average 12-month target prices of $89.97, $39.42, and $135.04, respectively. These target prices imply potential one-year returns of 14.8%, 3%, and 10.4%, respectively.