Goldman Sachs (GS, Financial) recently initiated coverage of some health care stocks and released ratings.
Goldman Sachs initiated coverage on Medtronic PLC (MDT, Financial) with a neutral rating.
Medtronic, a medical technology services company, has a market cap of $114.9 billion and an enterprise value of $134.36, for an EV/EBITDA ratio of 14.78.
The stock is currently trading around $83.94 per share on the New York Stock Exchange with a price-earnings (P/E) ratio of 29.63 and a price-book (P/B) ratio of 2.33. The forward P/E ratio is 16.92. The analysts’ EPS estimate is $4.58 for 2017. The average target price per share is $87.94. The recommendation rating, which ranges between 1.0 (Strong Buy) and 5.0 (Sell), is 2.2.
The company distributes an annual dividend of $1.72 through quarterly payments of 43 cents, for a dividend yield of 2.08%.
The company initiated coverage of Stryker Corp. (SYK, Financial), a medical technology company, with a neutral rating, setting a target price of $129 per share.
The average target price per share is now $143.14 and ranges between a low of $114 per share and a high of $157 per share. The recommendation rating is currently 2.1 out of 5.
Stryker has a market cap of $50.372 billion and an enterprise value of $54.29, for an EV/EBITDA ratio of 16.80.
Stryker is currently trading around $134.77 with a P/E ratio of 30.29 and a P/B ratio of 5.19. The forward P/E ratio is 19.09. For 2017, analysts forecast EPS of $6.43.
The health care company distributes an annual dividend of $1.70 through quarterly payments of 42.5 cents, for a dividend yield of 1.27%.
Goldman Sachs initiated coverage of Varian Medical Systems (VAR, Financial), a manufacturer of medical devices and software, with a neutral rating.
The analysts set a target price of $92 per share, which is $4.30 lower than the average target price of $96.30 per share. The average target price is an average of 10 analysts’ estimates. The target price ranges between a low of $80 per share and a high of $119 per share. The recommendation rating is 2.5 out of 5.
Varian is trading around $95.95 with a P/E ratio of 30.96 and a P/B ratio of 6.93. The company has a market capitalization of $8.82 billion. For 2017, analysts forecast EPS will decrease 16.7% to $3.90 from $4.68 in fiscal year 2016.
Goldman Sachs initiated coverage of Boston Scientific Corp.Ă‚ (BSX, Financial), a medical devices developer, with a neutral rating.Ă‚
The company is doubtful about the company's transcatheter aortic valve replacement (TAVR) program, which will cause the share price to move sideways on the stock market. Goldman Sachs set a target price of $28 per share, which represents only a 5.7% upside from the current market value.
Boston Scientific has a market capitalization of $36.26 billion and an enterprise value of $41.47 billion, for an EV/EBITDA ratio of 18.66. Boston Scientific is trading around $26.48 with a P/E ratio of 84.87 and a P/B ratio of 5.14. The forward P/E ratio is 18.65. The analysts’ EPS estimate is $1.25 for 2017.
The average target price per share is $29.32, which represents a 10.7% upside from the current share price. The recommendation rating is 1.8 out of 5.
Goldman Sachs released a conviction buy rating for Baxter International Inc. (BAX, Financial), setting a target price of $71 per share. Analyst Isaac Ro said “there is ample room for sentiment to improve” around this health care stock.
The renal and hospital products provider has a market cap of $31.3 billion. The stock is trading around $57.58 with a P/E ratio of 17.04 and a P/B ratio of 3.60. The forward P/E ratio is 22.49. The analysts’ EPS estimate is $2.27 for 2017, up 15.8% from 2016's EPS. The average target price per share is $58.45. The recommendation rating is 2.7.
The company distributes an annual dividend of 64 cents through quarterly payments of 16 cents, for a dividend yield of 1.13%.
Goldman Sachs released a buy rating for Intuitive Surgical Inc. (ISRG, Financial), setting a target price of $1,000. The analysts see the company as a structural winner in the surgical robotics market.
The company has a market cap of $31.66 billion and an enterprise value of $29.66 billion. The EV/Ebitda ratio is 27.54. The stock is trading around $859.47 per share on the Nasdaq with a P/E ratio of 43.33 and a P/B ratio of 7.66. The forward P/E ratio is 31.73. The analysts’ EPS estimate is $23.61 for 2017, a 5.6% increase from 2016. The average target price per share is $854.07. The recommendation rating is 2 out of 5.
Goldman Sachs initiated coverage of Zimmer Biomet Holdings Inc. (ZBH, Financial) with a sell rating and a price target of $92 per share.
The company that produces produts for patients with orthopedic problems has a market cap of $24.15 billion and an enterprise value of $34.81, for an EV/EBITDA ratio of 11.81.
Zimmer is currently trading around $119.78 with a P/E ratio of 49.03 and a P/B ratio of 2.42. The forward P/E ratio is 12.87. The analysts’ EPS estimate is $8.55 for 2017. The average target price per share is $134.05. The recommendation rating is 2.
The company distributes an annual dividend of 96 cents through quarterly payments of 24 cents, for a dividend yield of 0.78%.
The company initiated coverage of Edwards Lifesciences Corp. (EW, Financial) with a conviction buy rating, setting a target price of $138 per share. Ro said he sees the heart valve manufacturer becoming a leading player in “one of the highest growth and significant new market opportunities in cardiology.”
The average target price per share is now $119.36 and ranges between a low of $86 per share and a high of $140 per share. The current recommendation rating is 2 out of 5.
The company has a market cap of $23.84 billion and an enterprise value of $23.06, for an EV/EBITDA ratio of 22.89.
Edwards Lifesciences is currently trading around $113.65 with a P/E ratio of 37.38 and a P/B ratio of 8.72. The forward P/E ratio is 28.56. For 2017, analysts forecast EPS of $3.53.
The final stock Goldman Sachs initiated coverage of is Abbott Laboratories (ABT, Financial). The global health care company received a neutral rating and a target price of $45 per share.
Goldman Sachs thinks the company's acquisition of Saint Jude Medical Inc. will provide a solid contribution to EPS growth. Ro, however, says the company will face some challenges in the near future due to “sluggish trends in rhythm management and Nutrition, and the uncertain impact of the Sylmar warning letter.”
Abbott Laboratories has a market cap of $75.19 billion and an enterprise value of $91.32 billion. The EV/Ebitda ratio is 18.98.
The health care stock is trading around $43.26 with a P/E ratio of 45.09 and a P/B ratio of 2.40. The forward P/E ratio is 15.70. The EPS estimate is $2.47 for 2017, a 12.3% increase from 2016. The average target price per share is $48.08. The recommendation rating is 2 out of 5.
Disclosure: I have no positions in any stock mentioned in this article.
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