RBC Capital Markets upgraded Stryker CorporationSYK from sector Perform to Outperform, with a price target of $284, up from $240, citing potential tailwinds that position the company to deliver upside to sales estimates.
The analyst expects a strong order book in MedSurg as supply issues continue to ease, likely around mid-2023.
Second, we expect the recon backlog to be realized in a more meaningful way during the year as staffing continues to ease.
The analyst also expects macro pressures to continue to ease, and the sentiment around Stryker will be positive into 2023.
SYK noted on its Q3’22 earnings call that it expects hospital staffing pressures to resolve gradually and expect it to be a moderate tailwind into next year. The upside to RBC estimates could come from better trends around supply and backlog.
Price Action: SYK shares are up 2.17% at $261.80 on the last check Monday.
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