Jefferies Remains Cautious On SYK

Jefferies is remaining cautious on Stryker Corporation SYK shares on the basis of “multiple challenging industry headwinds (procedure volumes, pricing, hospital capex, etc.), to which the company is highly exposed, coupled with a premium valuation.” “Our one-year price target is $61 (up from $54), the current 15x 2011 estimates rolled to 2012,” Jefferies writes. “The multiple is at the high end of the peer group (as has historically been the case). Risks include patient volumes, pricing, and hospital capital spending.” Stryker Corporation closed Monday at $54.70.