Nomura Securities Starts Stryker (SYK) at Neutral

Nomura Securities initiates coverage on Stryker (NYSE: SYK) with a Neutral rating and a price target of $115.00.

Analyst Ed Ridley-Day commented, "We initiate coverage of SYK with a Neutral rating and USD 115 target price, implying 10% upside (14 March 2016). We believe that SYK is well positioned to sustain doubledigit earnings growth mid-term with its combination of strong execution and new product launches supporting above market growth in orthopaedics, particularly in trauma, the growth potential of its neurovascular business, a strong leadership position in surgical equipment and a strong record in expanding and strengthening its businesses through M&A. However, the stock has already performed well both over the past 12 months and YTD +14.9% TTM and +11.3% YTD vs the US Medtech sector +1.7% and -1.2%, respectively, and the S&P500 -3.4% and -2%, respectively. Valuation is supportive, but with the company trading in line with the sector on a PEG basis on our estimates and recent acquisitions and the ongoing buy-back now better reflected in valuation, we see greater upside elsewhere in the sector on a 6-12 month basis."

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 $105.20 yesterday.

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