Credit Suisse Adjusts Estimates and PT on Stryker Following MAKO Acquisition

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