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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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