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Credit Suisse Adjusts Estimates and PT on Stryker Following MAKO Acquisition

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In a report published Monday, Credit Suisse analyst Bruce Nudell adjusted estimates and raised the price target on Stryker Corporation (NYSE: SYK) from $77.00 to $84.00 following the MAKO Surgical Corp. (NASDAQ: MAKO) acquisition.

Credit Suisse added MAKO Surgical to Stryker estimates, raising 2013-2017 top-line CAGR by approximately 60bps to 5.5% CC. In the revised estimates, the analyst does not assume significant sales synergies which will likely prove conservative. Nudell lowered the 2014 EPS estimate from $4.69 to $4.53 due to the dilution of MAKO and unfavorable Fx. 2015 EPS estimated was also lowered from $5.14 to $5.11.

Nudell forecasted 4Q13 sales of $2.41 billion versus consensus of $2.44 billion. Credit Suisse expects fourth quarter EPS or $1.23 versus consensus of $1.22. and implied guidance of $1.20-$1.26.

The analyst concluded, "We like SYK's diversified business model & strong FCF generation. Moreover, we see MAKO as a good addition that could improve the ease & precision of complicated ortho procedures, which we believe could drive meaningful market share gains in SYK's hands longer term."

Shares of Stryker closed at $78.15 on Friday.

Latest Ratings for SYK

DateFirmActionFromTo
Nov 2019DowngradesOverweightEqual-Weight
Oct 2019MaintainsBuy
Oct 2019MaintainsOutperform

View More Analyst Ratings for SYK
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Posted-In: Bruce Nudell Credit SuisseAnalyst Color Price Target Analyst Ratings

 

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