Citizens JMP reiterates Market Perform rating on Stryker stock after Q2 beat

Investing.com - Citizens JMP has maintained its Market Perform rating on Stryker (NYSE:SYK), a $144.79 billion market cap leader in medical technology, following the company’s second-quarter 2025 financial results. According to InvestingPro, 16 analysts have recently revised their earnings estimates upward for the upcoming period.

Stryker delivered what Citizens JMP described as "another solid quarter," with the company reporting both top and bottom-line beats that led to guidance raises for both metrics. The firm noted that all key aspects of Stryker’s business "hummed along smoothly" during the period, maintaining its strong revenue growth of 11.36% over the last twelve months.

The medical device maker achieved a record second quarter for Mako robotic system installations, while maintaining strong utilization and adoption of its LIFEPAK 35 and Pangea plating offerings. The company also indicated it has a healthy order backlog expected to continue through the end of 2025.

Stryker demonstrated margin improvement during the quarter, with gross margin increasing 120 basis points and operating margin rising 110 basis points. Additionally, the company reduced its expected tariff impact from $200 million to $175 million, an improvement from earlier projections.

Following these results, Stryker raised its revenue guidance by approximately 75 basis points at the midpoint to reflect favorable pricing and foreign exchange impacts, while also increasing its earnings per share guidance by $0.18 at the midpoint to account for the stronger top-line performance, margin improvements, and positive currency effects. With a robust gross margin of 64.95% and an overall GOOD financial health score from InvestingPro, the company appears well-positioned, though current trading levels suggest the stock may be overvalued relative to its Fair Value.

In other recent news, Stryker Corporation reported impressive second-quarter earnings for 2025, surpassing both earnings per share (EPS) and revenue forecasts. The company achieved an EPS of $3.13, outpacing the expected $3.07, and generated revenue of $6.02 billion, exceeding the anticipated $5.94 billion. These strong financial results led Stryker to raise its own guidance for future performance. Following these developments, Truist Securities adjusted its price target for Stryker’s stock to $415 from $410, while maintaining a Hold rating. This adjustment reflects the company’s robust financial performance in the recent quarter. Despite the positive earnings report, Stryker’s stock experienced a slight decline during regular trading hours. However, it showed a minor recovery in aftermarket trading. These updates highlight the company’s current financial health and market position.

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