In a report released today, Michael Matson from Needham maintained a Hold rating on Stryker Corporation (SYK). The company’s shares closed yesterday at $167.07.
Matson observed:
“SYK announced that it closed its acquisition of K2M on 11/9/18. We have added K2M to our SYK model and adjusted our sales and EPS estimates as a result. From a strategic perspective, we believe that K2M fits well with SYK’s spine business and is largely complementary. But from a financial perspective, we see potential for significant sales dis-synergies and we think that SYK may have trouble delivering on its target of 30-50 bps of operating margin improvement in 2019 given K2M’s bloated operating expenses. For now, we are giving SYK the benefit of the doubt and assuming it can deliver 30 bps operating margin improvement next year but we maintain our Hold rating given our concerns.”
According to TipRanks.com, Matson is a 5-star analyst with an average return of 10.6% and a 62.4% success rate. Matson covers the Healthcare sector, focusing on stocks such as Boston Scientific Corp, Cardiovascular Systems, and Zimmer Biomet Holdings.
Stryker Corporation has an analyst consensus of Moderate Buy, with a price target consensus of $187.78.
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Stryker Corporation’s market cap is currently $62.52B and has a P/E ratio of 51.65. The company has a Price to Book ratio of 6.34.
Based on the recent corporate insider activity of 63 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of SYK in relation to earlier this year.
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Stryker Corp. engages in providing medical technology products and services. It operates through the following segments: Orthopaedics, MedSurg and Neurotechnology and Spine. The Orthopaedics segment provides reconstructive and trauma implant systems.
