Wolfe Research cuts Stryker to hold, lifts Abbott to buy
Analysts at Wolfe Research shift stance on two major med-tech firms, citing valuation and growth prospects.
Wolfe Research downgraded Stryker Corp. to Hold from Buy on Monday, citing the company's stretched valuation and moderating growth outlook in its orthopedics and spine segments.
The research firm maintained a $440 price target on Stryker shares, which were trading near $410 in premarket activity. Wolfe Research analyst Vijay Kumar noted that while Stryker remains a high-quality business, the stock's premium valuation limits near-term upside potential.
In contrast, Wolfe Research upgraded Abbott Laboratories to Buy from Hold, citing the company's diversified portfolio, strong cash flow generation and exposure to high-growth markets such as nutrition and diagnostics. The firm set a $140 price target on Abbott shares, which were indicated higher in premarket trading.
The med-tech sector has seen increased scrutiny in recent months as investors weigh the impact of pricing pressures, regulatory challenges and shifting demand patterns. Wolfe Research's adjustments reflect a selective approach to stock selection within the industry, favoring companies with more resilient business models and clearer growth trajectories.
Stryker's shares have gained approximately 12% year-to-date, while Abbott's stock has advanced about 8% over the same period.
Priya covers listed equities and corporate earnings, reading quarterly results and guidance for what they signal about sector health and forward valuations.
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