Solid Q2 medtech utilization trend should extend to H2 - Truist

SI-BONE

12/07/2023 13:53

** Brokerage Truist says its survey of 50 U.S. hospital
administrators points to improving utilization trends for
medical technology cos in Q2 vs Q1
    ** Adds that capital expenditure outlook slightly improved 
    ** Says survey suggests pent-up demand-driven utilization
could have more 'staying power' beyond H1 this year
    ** Truist expects an 'own-MedTech-FOMO-trade' at least
through the first few weeks of earnings
    ** Survey suggests quarter-on-quarter pick up vs Q1 for
procedure volumes more frequently in orthopedic joint procedures
and cardiac surgery
    ** Adds that in orthopedics, specifically hips and knees,
will likely see another strong growth performance; expects
Zimmer Biomet Holdings  ZBH.N  and Stryker Corp  SYK.N  to
deliver substantial upside in their ortho divisions
   ** Hospital staffing constraints have also improved over the
quarter with 70% of respondents saying that staffing impact on
the procedure volumes in Q2 is unchanged or getting better
   ** Insurers UnitedHealth Group  UNH.N  and Humana Inc  HUM.N 
have also warned of a jump in medical costs this year due to
higher-than-expected demand for surgeries and other medical
procedures

 (Reporting by Sriparna Roy in Bengaluru)
 ((Sriparna.Roy@thomsonreuters.com;))