Barclays Maintains an 'Equalweight' on Stryker (SYK); Good Quarter Given Weak Backdrop
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Price: $327.70 --0%
Rating Summary:
33 Buy, 13 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 7 | Down: 5 | New: 23
Rating Summary:
33 Buy, 13 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 7 | Down: 5 | New: 23
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Barclays maintains an 'Equalweight' on Stryker (NYSE: SYK) price target lowered $4 to $58.00.
Barclays analyst says, "Overall this was a solid quarter relative to expectations, with slight sequential improvement in ortho recon against a stable (although still weak) backdrop. MedSurg continues to perform well driven by Patient Handling growth (up 29% ex-fx). Notably, management reduced its 2011 ex-fx growth rate by 50 bps (to a 10-11% range from 10-12%) and now expects 'organic' sales growth to 4-5% (from 5-7%) calling the adjustment a "reflection of where we are in the year" and noting that maintaining its organic growth guidance would imply too aggressive of an assumption for 4Q. Despite the reduction in top-line guidance and no update to its margin or tax rate assumptions (though SG&A is running better than plan), management raised EPS guidance to a range of $3.70-$3.74 from its prior $3.65-$3.73, which we attribute to better-than-expected operating leverage in SG&A and a lower share count."
For more ratings news on Stryker click here and for the rating history of Stryker click here.
Shares of Stryker closed at $49.41 yesterday.
Barclays analyst says, "Overall this was a solid quarter relative to expectations, with slight sequential improvement in ortho recon against a stable (although still weak) backdrop. MedSurg continues to perform well driven by Patient Handling growth (up 29% ex-fx). Notably, management reduced its 2011 ex-fx growth rate by 50 bps (to a 10-11% range from 10-12%) and now expects 'organic' sales growth to 4-5% (from 5-7%) calling the adjustment a "reflection of where we are in the year" and noting that maintaining its organic growth guidance would imply too aggressive of an assumption for 4Q. Despite the reduction in top-line guidance and no update to its margin or tax rate assumptions (though SG&A is running better than plan), management raised EPS guidance to a range of $3.70-$3.74 from its prior $3.65-$3.73, which we attribute to better-than-expected operating leverage in SG&A and a lower share count."
For more ratings news on Stryker click here and for the rating history of Stryker click here.
Shares of Stryker closed at $49.41 yesterday.
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