Oppenheimer Downgrades Stryker (SYK) to Perform
Oppenheimer downgraded Stryker (NYSE: SYK) from Outperform to Perform, following miss and lower guidance. The firm cut its price target from $59 to $56.
"Last night, SYK lowered guidance for 2012/2013 EPS as mgmt is giving itself more room to make required investments for long-term growth. The lowered guidance isn’t a shock in light of the announcement of new CEO Kevin Lobo in early October. More important, in our view, are the hospital capital spending headwinds SYK's MedSurg business continues to face, execution risk in turning around the Europe business and a new product launch from ZMH in knees. We see valuation, a strong neurovascular opportunity and solid balance sheet as supportive of the shares. Lower visibility near-term/lack of catalysts move us to the sidelines."
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 $52.82 yesterday, with a 52 week range of $45.45-$57.15.
"Last night, SYK lowered guidance for 2012/2013 EPS as mgmt is giving itself more room to make required investments for long-term growth. The lowered guidance isn’t a shock in light of the announcement of new CEO Kevin Lobo in early October. More important, in our view, are the hospital capital spending headwinds SYK's MedSurg business continues to face, execution risk in turning around the Europe business and a new product launch from ZMH in knees. We see valuation, a strong neurovascular opportunity and solid balance sheet as supportive of the shares. Lower visibility near-term/lack of catalysts move us to the sidelines."
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 $52.82 yesterday, with a 52 week range of $45.45-$57.15.