Medtronic, Baxter most vulnerable to Mexico tariff threat; full impact uncertain - BMO

Silk Road Medical

31/05/2019 17:58

** Medical device makers Baxter International Inc  BAX.N ,
Medtronic Plc  MDT.N , and Silk Road Medical  SILK.O  appear to
have the "greatest" exposure to Donald Trump's Mexico tariff
threat, though it is impossible to tell the full impact,
brokerage BMO Capital Markets notes 
    ** President Donald Trump said on Thursday the United States
will impose a 5% tariff on all goods coming from Mexico starting
on June 10 until illegal immigration across the southern border
is stopped  urn:newsml:reuters.com:*:nL2N23624N
    ** The proposed 5% tariff would result in a less than $10
mln impact on Baxter, brokerage notes
    ** Bausch Health Co's  BHC.TO  Mexico manufacturing supplies
to Mexico and Central America, not the U.S. Therefore, the
impact of tariffs on BHC is minimal, Cantor Fitzgerald says 
    ** BMO says that for the largest U.S. standalone medical
device maker Medtronic, Mexico is listed in the co's 10-K annual
filing as the fourth largest manufacturing region
    ** Other medical technology companies with manufacturing
facilities in Mexico include Stryker Corp  SYK.N , Teleflex Inc
 TFX.N , Hill-Rom Holdings  HRC.N , Conmed Corp  CNMD.O , Merit
Medical Systems  MMSI.O  and Masimo Corp  MASI.O , brokerage
Needham says
    ** The 36-membered S&P 500 health care equipment and
services index  .SPLRCHC  slips 0.3% on Friday

 (Reporting by Manojna Maddipatla)
 ((Reuters Messaging:
manojna.kalyani.thomsonreuters.com@reuters.net))