Barclays on Medical Supplies & Devices: Continue To Favor Stocks with Potential Product Catalyst (STJ, THOR, HWTR & NUVA)
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Price: $45.15 -0.04%
Rating Summary:
10 Buy, 10 Hold, 2 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 11 | Down: 18 | New: 13
Rating Summary:
10 Buy, 10 Hold, 2 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 11 | Down: 18 | New: 13
Trade STJ Now!
Barclays on Medical Supplies & Devices: Spring Outlook and March Qtr EPS Review
Analyst, Adam Feinstein, said, "As we await MDT's 5/22 report for a complete picture of several major markets, we view 1Q volumes as relatively stable over modest expectations in the 1Q earnings season. While we see signs of stability and slight improvements in tone, we believe that a step up in utilization in the near term is unlikely as macro and pricing pressures, payer pushback, and challenges in Europe persist."
"In our view, there is not a "quick fix" to the economic drivers that impact medtech market growth including unemployment, insurance coverage, benefit design, scrutiny on overutilization, elective procedure delays, and government and hospital budget constraints. With this as a backdrop, we continue to favor stocks with potential product catalysts (St. Jude (Nasdaq: STJ) / Thoratec (Nasdaq: THOR) / Heartware (Nasdaq: HTWR) / NuVasive (Nasdaq: NUVA)), best relative valuations (Zimmer (NYSE: ZMH)/Covidien (NYSE: COV)), and strong clinical data that support increased utilization. We expect macro challenges to keep a lid on valuations and reiterate our neutral rating on the group."
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Analyst, Adam Feinstein, said, "As we await MDT's 5/22 report for a complete picture of several major markets, we view 1Q volumes as relatively stable over modest expectations in the 1Q earnings season. While we see signs of stability and slight improvements in tone, we believe that a step up in utilization in the near term is unlikely as macro and pricing pressures, payer pushback, and challenges in Europe persist."
"In our view, there is not a "quick fix" to the economic drivers that impact medtech market growth including unemployment, insurance coverage, benefit design, scrutiny on overutilization, elective procedure delays, and government and hospital budget constraints. With this as a backdrop, we continue to favor stocks with potential product catalysts (St. Jude (Nasdaq: STJ) / Thoratec (Nasdaq: THOR) / Heartware (Nasdaq: HTWR) / NuVasive (Nasdaq: NUVA)), best relative valuations (Zimmer (NYSE: ZMH)/Covidien (NYSE: COV)), and strong clinical data that support increased utilization. We expect macro challenges to keep a lid on valuations and reiterate our neutral rating on the group."
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