Melissa Davis
"What is readily apparent to us is the growth and profitability generated by the MedSurg segment," Schlang stressed before the company's update. "Stryker should not be considered an 'orthopedics' company."
Others believe that Stryker is well-positioned, too. Bank of America analyst Steven Lichtman sees strong opportunities for the company's MedSurg business in particular. Lichtman portrays nonprofit hospitals as flush with extra cash. He, for one, believes those hospitals will keep sending some of that money Stryker's way. "As we've discussed previously, a strong hospital CAPEX (capital expenditure) cycle has been a big driver of MedSurg outperformance," Lichtman noted. "Moreover, we believe a pipeline of new hospital projects has been created that should sustain this driver even if conditions on the ground were to change." Lichtman has a buy recommendation and an $81 price target on the stock. His firm has investment banking ties to the company.
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