Canaccord Genuity on Life Sciences - Biomedical Devices and Services: Q2/11 Orthopedic Preview
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Price: $30.60 --0%
Rating Summary:
5 Buy, 1 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
5 Buy, 1 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
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Canaccord Genuity on Life Sciences - Biomedical Devices and Services
Canaccord analyst says, "For most investors who have been in the medtech world for a significant amount of time, it is obvious that the best days of the orthopedics industry have passed. The days of lavish spending on surgeons and consulting agreements are a thing of the past, while struggling procedure volume growth combined with steady price degradation is the sign of the times. With channel checks at the American Academy of Orthopedic Surgeons (AAOS) meeting in February being very positive and Q1/11 results being lackluster, we believe investors came away very disheartened about the state of the industry. We continue to view the long-term opportunities very positively, but believe that in the “new age” of orthopedics there will still be winners and losers, and thus an opportunity for capital gains. Furthermore, while we believe the glory days of the orthopedic industry are unlikely to return, business should improve from current levels as the economy improves due to underlying demographics. When the macro economy improves is another question. We expect medtech investors to play the waiting game for many of these stocks until consistent growth and subsequent leverage opportunity returns."
Companies likely to report better-than-expected results and/or raise guidance
China Kanghui (NYSE: KH)(BUY)
Mako Surgical (Nasdaq: MAKO)(HOLD)
Other names likely to move in the coming six months
Alphatec (Nasdaq: ATEC)(BUY)
ArthroCare (Nasdaq: ARTC)(BUY)
Exactech (Nasdaq: EXAC)(BUY)
Integra LifeSciences (Nasdaq: IART)(BUY)
Stryker (NYSE: SYK)(BUY)
Zimmer (NYSE: ZMH)(BUY)
Canaccord analyst says, "For most investors who have been in the medtech world for a significant amount of time, it is obvious that the best days of the orthopedics industry have passed. The days of lavish spending on surgeons and consulting agreements are a thing of the past, while struggling procedure volume growth combined with steady price degradation is the sign of the times. With channel checks at the American Academy of Orthopedic Surgeons (AAOS) meeting in February being very positive and Q1/11 results being lackluster, we believe investors came away very disheartened about the state of the industry. We continue to view the long-term opportunities very positively, but believe that in the “new age” of orthopedics there will still be winners and losers, and thus an opportunity for capital gains. Furthermore, while we believe the glory days of the orthopedic industry are unlikely to return, business should improve from current levels as the economy improves due to underlying demographics. When the macro economy improves is another question. We expect medtech investors to play the waiting game for many of these stocks until consistent growth and subsequent leverage opportunity returns."
Companies likely to report better-than-expected results and/or raise guidance
China Kanghui (NYSE: KH)(BUY)
Mako Surgical (Nasdaq: MAKO)(HOLD)
Other names likely to move in the coming six months
Alphatec (Nasdaq: ATEC)(BUY)
ArthroCare (Nasdaq: ARTC)(BUY)
Exactech (Nasdaq: EXAC)(BUY)
Integra LifeSciences (Nasdaq: IART)(BUY)
Stryker (NYSE: SYK)(BUY)
Zimmer (NYSE: ZMH)(BUY)
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