Biden's planned tax hike to have modest impact on healthcare cos - Needham

NuVasive

09/04/2021 12:08

** Brokerage Needham says Biden administration's proposed
increase in U.S. corporate tax rate to have biggest impact on
diagnostics co NeoGenomics  NEO.O  and affect medtech co Conmed
Corp  CNMD.O  the least  
    ** Analysts at Needham performed a sensitivity analysis to
gauge impact on cos in coverage universe
    ** All else being equal, an increase in the tax rate to 25%
would reduce EPS at these companies by an average of 3.2% -
brokerage
    ** For every 100 bps increase in U.S. corporate tax rate,
analysts estimate NEO to see greatest headwind to 2022E adjusted
EPS, followed by Globus Medical  GMED.N , Cantel Medical
 CMD.N , NuVasive  NUVA.O  and Hologic  HOLX.O   
    ** Conmed, Medtronic  MDT.N , LivaNova  LIVN.O , Hillrom
 HRC.N  and Boston Scientific  BSX.N   would see smallest impact
to 2022E adjusted EPS - Needham
    ** Brokerage expects only some profitable companies to be
negatively impacted from a stock perspective    
    ** Biden administration is working on an infrastructure
package that is expected to include an increase in the corporate
tax rate to an estimated 25% to help fund spending  urn:newsml:reuters.com:*:nL1N2LZ1LP 
    

 (Reporting by Vishwadha Chander in Bengaluru)
 ((Vishwadha.Chander@thomsonreuters.com; within U.S. +1 646 223
8780, outside U.S. +91 80 6749 6132;))