April 29, 2024 14:22 GMT
Stryker SYK (Baa1 pos / BBB+): 1Q24 Preview
HEALTHCARE
Moody’s placed Stryker on Positive outlook in March ’24. Their criteria for an upgrade is financial leverage <2.75x on a sustained basis as well as general governance and strategy. Stryker was last a single-A credit from 2005-2016.
• Organic sales expected to grow 7.5%-9% to $5.1bn+.
• EBITDA consensus is $1.24bn.
• No share buy-backs have been announced for 2024; SYK is expected to invest in R&D which will further defend margin and growth. SYK 1% 31 trade about 15-18 wide to MDT/TMO which are low single-A.
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