Needham & Company Downgrades Stryker (SYK) to Underperform

Needham & Company downgraded Stryker (NYSE: SYK) from Hold to Underperform on Mako/Cap-Ex concerns.

Analyst Mike Matson commented, "We are downgrading SYK shares to Underperform from Hold. Our analysis (published today in a separate note titled SYK Mako Knee Market Share Analysis) shows that the Mako total knee is unlikely to be a significant "needle-mover" for SYK and we worry this could disappoint investors. Additionally, SYK's exposure to capital equipment (~15% of sales) is greater than many of its large-cap peers and it is therefore more at risk of an ACA repeal-induced capital spending slowdown. And SYK is less likely to benefit from reduced corporate tax rates than some of its peers. Given all of this, we expect SYK shares to underperform other large-cap med tech names in 2017 (ZBH in particular)."

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 $118.78 yesterday.

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