Oppenheimer Surveys Non-Profit Hospitals' 1Q11

Oppenheimer surveyed 50 non-profit CEOs and CFOs to evaluate capital spending and pricing and volume trends as they relate to major medical device markets. In the report, Oppenheimer writes, “As we saw in our 2Q-4Q10 surveys, our respondents' hospitals continue to see a gradually healing capital spending environment. Respondents also continue to be more optimistic than not about procedure volume trends looking forward. Still, we are not expecting any inflection in volumes and prices are again expected to be down in the low single-digits over the next 6-12 months. With a stable though still challenging environment, we continue to believe differentiated pipelines and/or product diversity remains key.” Oppenheimer also included its picks based upon those trends. In large cap, it likes Medtronic MDT and Stryker Corp. SYK which they have raised the price target on, from $61 to $68. In small cap, it prefers Endologix Inc. ELGX and Integra Life Sciences Holding Corp. IART. MDT and SYK closed at $39.25 and $60.52, respectively. ELGX and IART closed at $7.01 and $47.03, respectively.