Stryker (SYK) Results Slowing - Jefferies

Jefferies analyst, Raj Denhoy reiterated his Hold rating on shares of Stryker (NYSE: SYK) after SYK’s 2Q results slowed from last Q. Accounting for an extra day, overall organic growth was about 5.6% in 2Q vs. 6.1% last Q—Orthopedics and Neurotech/ Spine both slowed; Medsurg was better. The company cited normal variation but after a good run in shares and a premium valuation, the slowdown will be the story in the Q.

Full year revenue guidance was raised 50 bps on the low end to 6.0-6.5% and EPS was increased by $0.05 on the bottom end to $5.70 to $5.80. 3Q EPS was offered at $1.33 to $1.38 which is modestly lower than the Street’s current $1.41. The lack of outsized leverage to perhaps offset any questions on the topline didn’t materialize and EPS estimates for this year and next are largely unchanged. That said, the price target increases to $120.00 (from $113.00) although no rationale for the increase appeared in the note.

For an analyst ratings summary and ratings history on Stryker click here. For more ratings news on Stryker click here.

Shares of Stryker closed at $122.56 yesterday.

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