Stryker stock price target lowered to $450 from $455 at Bernstein

Investing.com - Bernstein SocGen Group lowered its price target on Stryker (NYSE:SYK) to $450.00 from $455.00 while maintaining an Outperform rating on the medical technology company. InvestingPro data shows Stryker currently trading at a P/E ratio of 46.8, considerably above Bernstein’s target multiple, suggesting the stock may be overvalued relative to its current market price of $356.24.

The price target adjustment follows Stryker’s quarterly results, which showed sales growth of 9.5% on what Bernstein described as a "tough comp" of 11.5% in the same quarter last year. The company reported total sales of $6.06 billion, roughly in line with consensus estimates of $6.04 billion. This performance aligns with Stryker’s 10.95% revenue growth over the last twelve months, reaching total revenue of $24.38 billion.

Stryker’s Orthopedics division posted sales of $2.25 billion, exceeding expectations by 2% with 11.4% organic growth. Meanwhile, the MedSurg and Neurotech segment grew 8.4% organically to $3.80 billion, missing estimates by 1%. According to InvestingPro, Stryker is a prominent player in the Healthcare Equipment & Supplies industry and generally trades with low price volatility, with a beta of 0.95.

The company reported adjusted earnings per share growth of 11.1% to $3.19, beating consensus by approximately 5 cents. Following these results, Stryker raised its fiscal year 2025 sales growth guidance by 25 basis points at the midpoint and increased the bottom end of its earnings per share range by 10 cents. This positive outlook is supported by Stryker’s strong financial health, with InvestingPro data showing the company maintains a healthy current ratio of 1.85 and has maintained dividend payments for 35 consecutive years.

Bernstein’s new price target is based on a price-to-earnings multiple of 27.5x, down from the previous 28.25x, applied to the firm’s forward Q5-Q8 EPS estimate of $16.32, which was raised from $16.06. The company’s cash flows can sufficiently cover interest payments, with $4.07 billion in levered free cash flow over the last twelve months. Discover more insights about Stryker and access its comprehensive Pro Research Report, along with 12 additional ProTips, by subscribing to InvestingPro.

In other recent news, Stryker Corporation reported a revenue of $6.057 billion for the third quarter, marking a 10.3% increase compared to the same period last year. This growth was primarily driven by a 9.5% rise in organic growth, with the Orthopedics segment showing notable strength. The company’s performance exceeded BTIG’s estimates by 3.7% and slightly surpassed overall market expectations by 0.2%. Earlier, Stryker had demonstrated robust performance in the second quarter of 2025, which led to an increase in its full-year guidance, indicating confidence in continued growth. Following these developments, BTIG raised its price target for Stryker from $408 to $410 while maintaining a Buy rating. The company’s strategic product innovations have also contributed to its strong financial performance. These recent developments reflect Stryker’s ongoing efforts to strengthen its market position and deliver consistent growth.

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