Needham & Co's Top MedTech Picks: MDT, SYK, ISRG, NUVA

Needham & Co's Ed Shenkan issued his top picks in MedTech. The stocks on the list are Medtronic, Inc. (NYSE: MDT), Stryker Corp. (NYSE: SYK), Intuitive Surgical, Inc. (Nasdaq: ISRG) and NuVasive, Inc. (Nasdaq: NUVA).

For Medtronic, he said, "Over 50% of MDT’s revs are Cardiac related. Even during a recession patients will have cardiac procedures." BUY rating, $58 price target.

For Stryker, he said, "With Stryker’s remarkable performance record, we view SYK earnings performance as significantly more predictable than comparable companies. SYK generates $1B+ in operating cash flows and has $2B+ in net cash." BUY rating, $66 price target.

For Intuitive Surgical, he said, "Based on initial survey results of 60+ hospital CEO and CFOs, we see upside to our estimates for system revenues. During a recession hospitals can justify purchasing da Vinci robots because these robots attract new patients, procedures, and revenues for the hospital." BUY rating, $225 price target.

For NuVasive, he said, "NUVA has grown top line over 50% historically. We expect mid 30s% growth going forward and profitability in 2009. With over $200M of cash." BUY rating, $50 price target.

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