William Blair Maintains Outperform On Stryker Following The Acquisition Of Small Bone Innovations


In a research note released today, William Blair analyst Matthew O’Brien reiterated coverage with an “Outperform” rating on Stryker Corporation (SYK) following the acquisition of Small Bone Innovation, a provider of upper and lower, small bone extremities solutions, for a total consideration of $375 million in an all-cash transaction.

O’Brien commented: “We had been concerned that growth in the company’s foot and ankle business would begin to slow following several quarters of stellar performance, but the acquisition of SBi fills a meaningful product gap here and should allow this franchise to continue to deliver strong results going forward. We continue to view Stryker’s diversification and financial strength (this deal should not have any impact on the company’s ability to execute additional deals in the coming months such as the much rumored Smith & Nephew (SNN) transaction) as unique features within the medical technology space, which makes it our top large-cap name”.

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