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Valuation hits a ten-year low! Barclays initiates coverage on 26 US medical technology stocks, with Stryker (SYK.US) among its top picks

Valuation hits a ten-year low! Barclays initiates coverage on 26 US medical technology stocks, with Stryker (SYK.US) among its top picks

智通财经智通财经2026/10/08 06:23
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Barclays analyst Christopher Pasquale on Tuesday initiated coverage on 26 US-listed medtech companies for the first time, and included Stryker (SYK.US) and Abbott (ABT.US) on the recommended list of large-cap medtech stocks.

According to Zhihu Finance APP, Barclays analyst Christopher Pasquale on Tuesday initiated coverage of 26 U.S.-listed medical technology companies for the first time, placing Stryker (SYK.US) and Abbott (ABT.US) on the recommended list of large-cap medical technology stocks. The bank noted that the recent underperformance of the medical technology sector provides investors with an opportunity to buy high-quality companies at attractive valuations.

Before Pasquale voiced his optimistic outlook, the sector benchmark iShares U.S. Medical Devices ETF (IHI.US) had fallen nearly 19% over the past five years, while the S&P 500 Index rose nearly 77% over the same period.

In his report, he wrote: “After several years of relative underperformance due to slowing revenue growth, medical technology stocks are now trading at their lowest valuations in a decade, and at the deepest discount to the S&P 500 Index since the peak of the tech bubble.”

He described the current sell-off as an overreaction, partly due to multiple company-specific headwinds over the past year, “making the industry’s return to average growth rates appear as if fundamentals have deteriorated more significantly.”

Pasquale expects that a potential stabilization in large-cap medical technology companies’ revenues next year could serve as a catalyst to boost market sentiment and valuation multiples. “While we believe investors should remain cautious until the outlook becomes clearer, we are convinced that the current market environment offers quite attractive investment opportunities,” he added.

Which stocks are worth buying? Stryker and Edwards Lifesciences top the overweight list

Barclays named Stryker and Edwards Lifesciences (EW.US) as their top large-cap picks, with target prices of $375 and $110, respectively. Other large-caps rated as “Overweight” include Abbott, with a target price of $120; GE HealthCare Technologies (GEHC.US), with a target price of $85; and Intuitive Surgical (ISRG.US), with a target price of $485.

For small and mid-cap stocks, Barclays singled out Beta Bionics (BBNX.US), Dexcom (DXCM.US), and LivaNova (LIVN.US) as their top picks, with target prices of $30, $115, and $105, respectively. Other small and mid-cap medical technology stocks rated as “Overweight” include Axogen (AXGN.US), with a target price of $55; Bausch + Lomb (BLCO.US), with a target price of $24; Procept BioRobotics (PRCT.US), with a target price of $30; and TransMedics (TMDX.US), with a target price of $120.

Which stocks require caution? Medtronic and Boston Scientific rated “Neutral”; Baxter and Becton Dickinson downgraded

Companies rated as “Neutral” include: Alcon (ALC.US), target price $70; Averitas Technologies (AVR.US), target price $10; Boston Scientific (BSX.US), target price $48; Humacyte (HUMA.US), target price $0.50; Insulet (PODD.US), target price $150; Medtronic (MDT.US), target price $95; Minimed (MMED.US), target price $22; Senseonics (SENS.US), target price $10; Tandem Diabetes (TNDM.US), target price $18; Cooper Companies (COO.US), target price $60; Zimmer Biomet (ZBH.US), target price $100.

Companies rated as “Underweight” include: Baxter International (BAX.US), target price $20; Becton Dickinson (BDX.US), target price $165; Inspire Medical (INSP.US), target price $65.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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