Piper Jaffray Overweight On Stryker After Earnings (SYK)

Piper Jaffray has an Overweight rating and a $65 price target on shares of Stryker Corp. SYK after it reported earnings. In a note to investors, Piper Jaffray writes, "Upside from Med Surg and the company's recently acquired Neurovascular business drove the upside, partially offset by a shortfall in hips and knees, as performance across the ortho market remains on the sluggish side. Upside to sales and gross margins (+$0.07) was partially offset by higher SG&A, non-op and tax (-$0.05) to deliver $0.02 of upside to our number. We continue to view Med Surg as the reason to own SYK at the moment, driven by stable and improving hospital capital spending trends, with longer term benefits of the Stryker portfolio coming into play as reconstructive implant trends improve and Neurotechnology continues its return to market growth rates. We reiterate our Overweight rating on SYK and remain buyers of the stock at current levels." Shares of SYK are down $2.73 to $58.37, a loss of 4.4% on 2.5 million shares.