In a note to investors, Wells Fargo analyst Larry Biegelsen said that Medtronic would only enter a new market it believes it can be a top player in. Smith & Nephew's hip and knee business is not large enough to make Medtronic a top player in the market according to the analyst. Biegelsen also said that Medtronic does not seem eager to use a Smith & Nephew acquisition to take advantage of a tax reduction.
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TheStreet Ratings team rates SMITH & NEPHEW PLC as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:
"We rate SMITH & NEPHEW PLC (SNN) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its solid stock price performance, increase in net income, largely solid financial position with reasonable debt levels by most measures, expanding profit margins and growth in earnings per share. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity."