A Barclays analyst cut her rating on Stryker amid the COVID-19 pandemic.
Medical device and technology companies are losing revenue due to the postponement and cancellation of elective surgery procedures during the pandemic. Stryker withdrew its 2020 full-year financial projections on March 31, saying the pandemic has had "a significant negative impact on Stryker's operations and financial results." The company aims to provide further information on April 1.
In the meantime, here are four notes from Barclays' Kristen Stewart:
1. Ms. Stewart lowered her rating on Stryker to "underperform," according to a Seeking Alpha report.
2. Her price target on Stryker is $155 with a 15 percent downside risk.
3. The market is underappreciating the severity and length of revenue declines as a result of COVID-19, according to Ms. Stewart, which she cites as a reason for lowering her price target. She also cited the drop in physician office visits and a potential slow ramp-up of elective procedures.
4. A second wave of COVID-19 cases later this year could put further strain on Stryker if more procedures are canceled.
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