MedTech: Strong Q3 recovery not enough to impress investors - BTIG

Vericel

12/10/2020 15:45

** Brokerage BTIG says medical device makers' shares
unlikely to move higher on upcoming Q3 results alone, without
cos giving detailed outlook/expectations for Q4 and 2021 
    ** Expects Abbott Laboratories  ABT.N  and Boston Scientific
Corp  BSX.N  to beat Q3 Street est, helped by COVID-19 tests and
sequential improvement in medical procedures, respectively 
    ** Zimmer Biomet  ZBH.N , Vericel  VCEL.O , OrthoPediatrics
 KIDS.O  and Orthofix  OFIX.O  also appear poised to beat,
driven by faster recovery in elective procedures and demand in
their niche markets - BTIG
    ** Brokerage cautious on Dexcom  DXCM.O , Insulet  PODD.O 
and Intuitive Surgical  ISRG.O  
    ** Investors want a clear line of sight and confidence in FY
2021 growth rates; companies with impactful catalysts slated for
late 2020 and 2021 are likely to outperform peers - BTIG
    ** Including session's moves, the S&P 500 health care
equipment and services index  .SPLRCHC  up ~8% YTD vs 8.7% rise
in S&P 500 index  .SPX 

 (Reporting by Manojna Maddipatla in Bengaluru)
 ((manojna.kalyani@thomsonreuters.com; within the U.S. +1 646
223 8780, outside the U.S. +91  80 6749 1692))