UPDATE: Credit Suisse Raises Price Target On Stryker On 4Q14 Earnings Preview

In a report published Tuesday, Credit Suisse analyst Bruce Nudell reiterated an Outperform rating on

, and raised the price target from $90.00 to $100.00. In the report, Credit Suisse noted, “We're updating our 4Q14 sales/EPS estimates to $2.62B (8.6% CC, 5.6% organic)/$1.45 from $2.62B (8.0% CC, 4.6% organic)/$1.46 based on the company's early January preannouncement of $2.62B in sales & an EPS range of $1.43-$1.45. We're also adjusting our 2015 sales/EPS estimates to $9.92B (6.6% CC, 5.9% organic)/$5.09 from $10.18B (6.6% CC, 5.5% organic)/$5.21 on worsening Fx headwinds & slightly lower acquisition contribution partially offset by higher MedSurg estimates. Of note, SYK has implemented a transactional hedging program but does not hedge translational risk which it estimated was a $0.20 drag on 2015 EPS. Our updated estimates compare with 2015 consensus sales/EPS of $10.12B (4.5% YoY reported)/$5.14. We're also raising our DCF-based target price to $100 from $90 which implies an 18X P/E multiple on 2016 EPS which we believe is warranted given SYK's strong ~5%+ 2015-17 organic top-line growth trajectory.” Stryker closed on Monday at $92.55.