Wednesday, July 29, 2015

Seeking Alpha: Stryker Seems Next In Line For A Big Deal

It's hard to find much to complain about with Stryker (NYSE:SYK). The shares aren't cheap, but then they weren't back in January and they've managed to tack on another 10%, making them one of the better performers in the group this year. I suppose I could complain that the company's solid revenue growth isn't unlocking a lot of margin leverage, but then this is a pretty efficiently run company from the off.

Looking ahead, I'm still not wild about the valuation, but I do acknowledge that Stryker has dry powder that it can deploy toward accretive M&A. I would be in no rush to sell Stryker if I owned it, but I generally like to see some discount to DCF-based or EV/rev-based fair value to make a new purchase, and I just don't see that here in Stryker's valuation.

Continue here:
Stryker Seems Next In Line For A Big Deal

No comments: