Stryker (SYK – Research Report), the Healthcare sector company, was revisited by a Wall Street analyst today. Analyst Joanne Wuensch from Citi maintained a Buy rating on the stock and has a $450.00 price target.
Joanne Wuensch’s rating is based on Stryker’s strategic acquisition of Inari, which is expected to significantly enhance its market position in the venous thromboembolism (VTE) sector. The acquisition, valued at $4.9 billion, brings Inari’s ClotTriever and FlowTriever systems under Stryker’s umbrella, targeting a substantial market with a global total addressable market (TAM) of $15 billion, including a $6 billion market in the U.S. growing at 20% annually. This acquisition is anticipated to contribute $590 million in revenue for 2025 and slightly impact operating margins and earnings per share (EPS), indicating a positive long-term growth trajectory for Stryker.
Furthermore, Inari’s impressive historical revenue growth, with a compound annual growth rate (CAGR) of approximately 52% from 2020 to 2023, and high gross margins of 88% in 2023, highlight its potential to sustain profitability. The acquisition also opens opportunities with interventional radiologists, vascular surgeons, and interventional cardiologists, while minimizing salesforce overlap. These factors, combined with updated financial projections for Stryker, support the Buy rating, reflecting confidence in Stryker’s continued evolution and potential for share price appreciation.
In another report released on February 19, Bank of America Securities also reiterated a Buy rating on the stock with a $450.00 price target.