UPDATE: Bank of America Merrill Lynch Reiterates Buy Rating, Raises PT on Stryker Corporation
In a report published Wednesday, Bank of America Merrill Lynch reiterated its Buy rating on Stryker Corporation (NYSE: SYK), and raised its price target from $57.00 to $67.00.
BofA Merrill Lynch noted, “Over the last 10 years, SYK has traded at a 33% P/E premium to the S&P, but since 2008, the average premium has been reduced to below 20%. Our PO assumes SYK's premium increases back up to the 20% area as investors get more comfortable with SYK's ability to maintain and grow margins despite a tough environment and as investors gain confidence that the weak economy is not on the verge of driving another downtick in top-line growth.”
Stryker Corporation closed on Tuesday at $55.81.
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