UPDATE: Goldman Sachs Upgrades Stryker Corporation to Buy on Organic Growth, Capital Allocation

Goldman Sachs raised its rating on Stryker Corporation

from Neutral to Buy and increased its price target from $55 to $68. Goldman Sachs noted, "Our thesis calls for improvements in both operational and financial performance as follows: (1) new CEO and a reset of expectations for 2013; (2) strong product portfolio/pipeline and diversified revenue base offer multiple growth opportunities; (3) shareholder-friendly capital allocation with a greater orientation to cash returns; (4) cost and quality control initiatives remain a source of margin opportunity; and (5) attractive relative valuation compared to other large-cap MedTech firms in our coverage universe." Stryker Corporation closed at $54.57 on Monday.