Stryker "outperform," target price raised

10/17/03 - Robert W. Baird

NEW YORK, October 17 (New Ratings) – Analysts at Robert W Baird maintain their “outperform” rating on Stryker Corp (SYK). The 12-month target price has been raised form $81 to $83.

Shares of Stryker Corp, a leading international orthopedic company, are currently trading at $78.76.

According to Robert W Baird’s research note published this morning, Stryker reported higher than expected EPS and revenues in 3Q03. The analysts attribute the company’s performance to an the increase in the sales of orthopedic implants. The increase in sales of the recently launched Trident is also impressive, the analysts say.

Robert W Baird mentions that the company’s stock has appreciated by 80% since its low point in the summer of 2002. The analysts believe that since the company’s stock is currently trading close to the upgraded target price, any weakness in the stock price should be viewed as a buying opportunity.

The EPS estimates for 2003 and 2004 have been raised from $2.18 to $2.23 and from $2.62 to $2.68, respectively. The P/E estimates for 2003 and 2004 are 35.3x and 29.4x, respectively.

Robert W Baird maintains its “outperform” rating on Stryker Corp.