Analysts Review Stryker's Q1: 'The Underlying Business Momentum Remains Strong'

Medical technology and orthopedic implant company Stryker Corporation SYK reported an earnings beat Tuesday, and three sell-side analysts remain bullish on the stock.

Stryker reported quarterly earnings of $1.88 per share, beating the consensus estimate of $1.84 and up about 12 percent over the same quarter last year. Revenue of $3.156 billion narrowly missed the Street estimate.

The Analysts

• Canaccord Gennuity’s Kyle Rose reiterated a Buy rating on Stryker and raised the target price from $190 to $195.
• Wells Fargo’s Larry Biegelsen has an Outperform rating with a $219 price target.
• Raymond James analyst Lawrence Keusch maintained an Outperform rating and raised the target price from $195 to $205.

Canaccord 

Rose said in a post-earnings note that Canaccord sees Stryker as a “compelling asset” in the large-cap medical technology realm and that it should be a core holding for growth-oriented investors.

The rationale: Stryker’s stable-to-improving market fundamentals, robust new product cycles and opportunity for durable operating leverage.

Wells Fargo

Biegelsen said it was another strong quarter for Stryker, which had organic growth of 7.3 percent year-over-year, at the upper end of the company’s prior full-year 2019 outlook.

“The underlying business momentum remains strong,” the analyst said, noting the company’s raising of its lower-end estimates for 2019 revenue and earnings.

Raymond James

Keusch said he's impressed by Stryker's organic constant currency growth, and cited particular growth in the company's knee replacement products and MAKO robotic surgical assistant. 

Price Action

Stryker shares down 0.82 percent at $185.41 at the time of publication Wednesday. 

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Photo courtesy of Stryker.