Stryker, Abbott among new Overweights at Barclays (SYK:NYSE)

Stryker (SYK) announced a leadership transition, with Kevin Lobo becoming Executive Chair and Spencer Stiles taking over as CEO in 2027. The stock has declined 8.2% over 30 days and 14.9% over 90 days, but remains up 13.6% over 5 years. The company reported $25.8B in annual revenue and $3.7B in net income. Analysts suggest the stock is undervalued at $278.20, with a fair value estimate of $311.21, citing long-term growth prospects and recurring revenue.

Barclays initiated coverage on 26 medical device makers, rating Stryker (SYK) and Abbott Laboratories (ABT) as Overweight. Analyst Christopher Pasquale cited compelling valuations and a potential stabilization of revenue as catalysts. Price targets were set for several companies, including SYK at $375 and ABT at $120.

Baird reiterated an Outperform rating and $385 price target for Stryker (SYK) after its planned CEO transition. The stock is down 20% year-to-date. Analysts have mixed reactions, with some lowering estimates due to orthopedic and Inari issues, while others remain optimistic about the transition.

Barclays initiated coverage on Abbott Laboratories with an Overweight rating and a $120 price target, citing valuation, earnings revisions, and visibility. The stock is currently trading at $98.16, down 1.94% over 5 days and 2.76% year-to-date. Abbott recently received FDA approval for its CardioMEMS HF System.

Abbott Laboratories agreed to a $385M settlement to resolve a False Claims Act lawsuit over alleged contamination at its Sturgis, Michigan, and Casa Grande, Arizona, plants. The DOJ and state AGs filed the suit, citing poor conditions and alleged concealment of contamination tests. Abbott denied liability. The 2022 recall caused widespread formula shortages. Whistleblowers will receive $69M.

Abbott Laboratories received FDA approval for upgrades to its CardioMEMS HF System and launched SimpleScreen CRC, a blood-based colorectal cancer screening test. These updates extend Abbott's reach in heart failure monitoring and early cancer detection. Analysts expect 8.8% yearly revenue growth and profit margins rising to 16.0% by 2029, with a consensus earnings forecast of $9.6b by 2029.