JPM expects most MedTech cos to beat relatively stale Q2 Street sales forecasts

NuVasive

13/07/2020 12:38

** J.P. Morgan says uncertainty remains high, investor
consensus remains low and reactionary and thematic investing
still trump fundamentals for MedTech sector ahead of Q2    
    ** Expects most companies to beat relatively stale Q2 Street
sales forecasts including Johnson & Johnson's  JNJ.N  devices,
Abbott Laboratories  ABT.N , Zimmer Biomet  ZBH.N , NuVasive
 NUVA.O  and Conmed  CNMD.N  
    ** Q2 EPS won't be good for almost every company in the
sector - JPM
    ** We'd expect most Street models to raise Q3 estimates post
Q2 for MedTech cos and leave Q4 relatively unchanged, but we
don't think this translates to higher 2021 and 2022 forecasts -
JPM
    ** Says by far bigger focus is on H2 commentary and any
early confidence into what 2021 could look like given lack of
visibility and confidence
    ** Recommends safe stocks like ABT, Baxter International
 BAX.N , Becton Dickinson  BDX.N  and DexCom  DXCM.O  in
large-cap and Insulet Corp  PODD.O  and Penumbra  PEN.N  in
small-to-mid cap
    ** Also recommends owning some names in recovery - Boston
Scientific  BSX.N , CNMD, Nevro  NVRO.N , Intersect Ent  XENT.O 
and Glaukos  GKOS.N  
    ** Doesn't recommend being short or underweight on MedTech
sector as JPM expects it to outperform during election cycle and
amid hopes of positive COVID-19 vaccine data

 (Reporting by Trisha Roy in Bengaluru)
 ((Trisha.Roy@thomsonreuters.com; within U.S. +1 646 223 8780,
outside U.S. +91 80 6182 3635;))