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Fly News Breaks for November 9, 2018
ZBH, WMGI, SYK
Nov 9, 2018 | 05:46 EDT
After attending Stryker's (SYK) analyst meeting, Piper Jaffray analyst Matt O'Brien raised his price target for the shares to $190 from $187 and reiterates an Overweight rating on the name. Management focused on growth drivers in neurovascular, trauma and extremities, and endoscopy, says the analyst. He believes Stryker is positioned to deliver "top quartile large cap growth" and continues to recommend investors own the name. Stryker management was clear that they want to get bigger in total shoulder arthroplasty, which could be a competitive headwind to Wright Medical (WMGI), but the former is unlikely to have the product portfolio to really hurt the latter in 2019 or 2020, O'Brien tells investors in a research note. Further, he says the analyst day "emboldens" his Neutral rating on Zimmer Biomet (ZBH). Stryker has not seen much of an organization change at Zimmer recently and believes it is still ripe for share loss, notes O'Brien.
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