Stryker (SYK) Stock Forecast & Price Target

Stryker is positioned for continued financial growth, with management projecting an increase in operating margins of approximately 100 basis points by 2025 and highlighting a robust order book and favorable capital expenditure environment that suggest sustaining momentum. The company's focus on operational excellence has led to notable improvements in operating margins, expected to rise by about 210 basis points for 2024-2025, reflecting resilience despite external challenges such as tariffs. Additionally, Stryker's entry into high-growth markets is enhancing its weighted average market growth rate, which bodes well for future revenue growth, with earnings per share anticipated to reach $16.69 in 2027, marking an increase from previous forecasts.

Stryker's negative outlook is primarily driven by recent disruptions from acquisitions, a deceleration in Mako utilization amidst rising competition, and a challenging capital environment that is expected to impact shares. The company faces key risks, including a potential slowdown in organic revenue growth to 8% or less due to unsuccessful new product launches and revenue dis-synergies from acquisitions, coupled with pressures from inflation and lower-than-expected earnings. Additionally, a decline in elective procedures and hospital capital spending, particularly in international markets, further exacerbates concerns over Stryker's margin performance and long-term earnings growth potential.