UPDATE: Oppenheimer Downgrades Stryker to Perform on Lowered Guidance
Oppenheimer reduced its rating on Stryker (NYSE: SYK) from Outperform to Perform and reduced its price target from $61 to $57.
Oppenheimer commented, "Last night, SYK lowered guidance for 2012/2013 EPS as mgmt is giving itself more room to make required investments for long-term growth. The lowered guidance isn't a shock in light of the announcement of new CEO Kevin Lobo in early October. More important, in our view, are the hospital capital spending headwinds SYK's MedSurg business continues to face, execution risk in turning around the Europe business and a new product launch from ZMH in knees. We see valuation, a strong neurovascular opportunity and solid balance sheet as supportive of the shares. Lower visibility near-term/lack of catalysts move us to the sidelines."
Stryker closed at $52.82 on Wednesday.
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