Morgan Stanley published a research report today stating that by setting the bar low with leverage and capital return expectations, Stryker has positioned itself well for '12.
“The 2012 outlook implies no utilization improvement in Recon and assumes a slowdown in MedSurg considering European macro visibility. Neurovascular growth appears achievable considering product launch traction and leverage with the Concentric platform in ‘12. Organic acceleration would drive results to the upper end of guidance, and hinges upon recon market and hospital capex trends,” Morgan Stanley said in the report.
Morgan Stanley reiterates its Overweight rating and $60.00 PT on Stryker Corp., which closed yesterday at $52.94.