JPMorgan Chase lowered its price target for Stryker (NYSE:SYK) to $400 from $445 in a research report released Friday, while keeping an overweight rating on the medical technology company's stock. The revised target implies potential upside of 35.39% from the company's previous close, according to Benzinga.
The price cut follows Stryker's first-quarter results, released Thursday. The company reported adjusted earnings per share of $2.60, missing analyst consensus estimates of $2.98 by $0.38. Revenue came in at $6.02 billion for the quarter, below the $6.34 billion analysts expected. Management attributed the shortfall to a cyber incident that disrupted production, pressured margins, and slowed growth.
Other major Wall Street firms also adjusted their outlooks this week. Goldman Sachs reduced its price target from $403 to $357 and assigned a neutral rating. Needham & Company lowered its target from $454 to $418 while maintaining a buy rating. TD Cowen downgraded the stock from buy to hold, setting a $387 price objective. Despite the cuts, William Blair and Piper Sandler reiterated overweight and outperform ratings, respectively.
Across all coverage, 16 equity research analysts have assigned buy ratings and six have issued hold ratings, according to MarketBeat.com. The consensus average price target stands at $401.43, with an overall rating of "Moderate Buy."
Stryker's quarterly performance showed revenue growth of 2.6% year-over-year, though the company posted a return on equity of 23.74% and net margin of 13.20%. The company has issued full-year 2026 guidance for adjusted earnings per share between $14.90 and $15.10, signaling management confidence in recovery from the cyber disruption.
On the institutional front, several investment firms have adjusted their positions. Brighton Jones grew its stake by 15.4% in the fourth quarter, while Marshall Wace more than doubled its holdings in the second quarter. Institutional investors and hedge funds collectively own 77.09% of the company's stock. Director Ronda E. Stryker sold 250,000 shares in February at an average price of $362.92, reducing her ownership stake by 9.23%.
Stryker is scheduled to present at the Bank of America Global Healthcare Conference on May 13, providing management an opportunity to address the cyber recovery and investor concerns.
