Sundry Photography/iStock Editorial via Getty Images
BofA Securities has upgraded Stryker (NYSE:SYK) to buy, stating that it sees the medtech as a top stock for 2024.
The investment bank said that while Stryker’s message on margin upside has turned “more bullish,” the stock “has yet to work given all the negative sentiment on medtech.” BofA added that it sees this as an “opportunity now ahead of the 2024 upside.”
BofA said that a new product super-cycle could add 100 to 200bps to revenue growth, while upside to operating margins could add 2% upside to EPS. It added that the backlog for orthopedic procedures could sustain revenue for hip and knee devices at higher-than-normal levels for at least three more years.
The investment bank set its price target for Stryker at $315.