HomeMarket NewsBofA Upgrades Stryker, Sees it as a Top Stock for 2024

BofA Upgrades Stryker, Sees it as a Top Stock for 2024

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Stryker Corporation headquarters in Silicon Valley

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Bank of America Securities has upgraded Stryker (NYSE:SYK) to a buy rating, affirming its belief that the medtech company will be a top-performing stock in 2024.

The investment bank notes that Stryker’s positive outlook on increased profit margins has not yet been reflected in the stock’s performance, largely due to prevailing negative sentiments towards the medtech sector. Bank of America sees this dissonance as an β€œopportunity” for investors who can potentially benefit from the anticipated upswing in 2024.

According to Bank of America, a new product super-cycle could drive revenue growth by 100 to 200 basis points, and improved operating margins could further enhance earnings per share (EPS) by 2%. Additionally, the backlog of orthopedic procedures is expected to sustain higher revenue levels for hip and knee devices for at least three more years.

The investment bank has set a price target of $315 for Stryker.

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