Stryker (SYK) Stock Forecast & Price Target

Stryker's management has projected an operating margin improvement of approximately 210 basis points for 2024-2025, driven by its Operational Excellence initiatives, which is expected to be further augmented by an additional 150 basis points expansion through 2028. The company has effectively increased its exposure to high-growth markets, resulting in its weighted average market growth rate outpacing the overall MedTech industry by about 400 basis points. Moreover, Stryker's focus on mergers and acquisitions over the past five years has enhanced its integration capabilities and diversified its product offerings, allowing for balanced growth across its portfolio.

Stryker faces significant challenges that contribute to a negative outlook on its stock, primarily driven by disruptions from recent acquisitions and a deceleration in the utilization of its Mako robotic system due to increased competition. Projections indicate potential organic revenue growth could slow to 8% or less, compounded by below-consensus earnings resulting from unsuccessful product launches and negative revenue impacts from acquisitions. Key risks include slower growth in the orthopedic market, declining hospital capital spending, and inflationary pressures, all of which may negatively affect Stryker's financial performance and market position.