Medical device makers may see recovery in 2023 - Citi

Becton Dickinson and Co

12/12/2022 13:07

** Citigroup believes medical device makers, which have
underperformed broader markets in 2022, could see a recovery
from pandemic-related challenges next year
    ** Believes device makers could benefit as patient volumes
normalize, hospital staffing improves and macro pressures ease
towards H2 2023
    ** However, despite the sector being under pressure in 2022
brokerage notes certain firms that have outperformed such as
Johnson & Johnson  JNJ.N ; raises PT on JNJ to $205 from $198
    ** Brokerage favors companies that are looking at new
product launches and have a history of execution; names Dexcom
Inc  DXCM.O , Penumbra Inc  PEN.N  and Stryker Corp  SYK.N  as
its top picks
    ** Also upgrades Glaukos  GKOS.N  to "buy" from "neutral",
Becton Dickinson  BDX.N  to "neutral" from "sell" and downgrades
Baxter International  BAX.N  to "neutral" from "buy"
    ** The S&P 500 healthcare equipment and supplies index
 .SPLRCHCEQ  is down 22% so far this year vs a 17.5% decline in
the benchmark  .SPX  index
 (Reporting by Amruta Khandekar)
 ((Amruta.Khandekar@thomsonreuters.com;))