Stryker stock initiated at Neutral by Rothschild Redburn with $420 target

Investing.com - Rothschild Redburn initiated coverage on Stryker (NYSE:SYK) with a Neutral rating and a $420 price target on Thursday. The target sits within the current analyst range of $316 to $465, with the stock currently trading near its 52-week high at $376.88.

The research firm acknowledged Stryker’s consistent above-market growth and share gains in both Orthopaedics and Medical Surgical & Neurotechnology segments over more than a decade.

Rothschild Redburn believes Stryker’s outperformance is set to continue but argues that current consensus forecasts already adequately reflect the company’s growth opportunities.

The firm noted Stryker’s leadership position in the higher-growth Extremities segment and its early adoption advantages in robotic assistance and cementless technology, with nearly two-thirds of its US knee implants placed using its Mako robotic system.

Despite these strengths, Rothschild Redburn sees potential for Stryker’s sector-leading momentum to soften amid a more competitive marketplace following Zimmer Biomet’s investment in an expanded portfolio, with limited upside to consensus Orthopaedics growth estimates. According to InvestingPro, which offers 12+ additional insights on Stryker’s valuation and growth prospects, the stock currently appears overvalued relative to its Fair Value.

In other recent news, Stryker has announced its second-quarter 2025 earnings, surpassing expectations with an earnings per share (EPS) of $3.13, compared to the forecasted $3.07. The company’s revenue also exceeded projections, reaching $6.02 billion against an anticipated $5.94 billion. Following these strong results, Stryker has raised its guidance for both revenue and earnings per share. Truist Securities responded by raising its price target for Stryker to $415, while maintaining a Hold rating on the stock. Citizens JMP reiterated its Market Perform rating, noting the company’s solid performance and record Mako surgical robot installations. Additionally, Stryker’s Board of Directors declared a quarterly dividend of $0.84 per share, a 5.0% increase from the same period last year. These developments reflect a period of strong financial performance and strategic growth for Stryker.

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