Stryker (SYK) Stock Forecast & Price Target

Stryker has demonstrated an impressive operating margin improvement of approximately 210 basis points for the years 2024 and 2025, driven by its Operational Excellence initiative, which positions the company favorably amid tariff challenges. The company has strategically increased its exposure to high-growth markets, resulting in an improved weighted average market growth rate (WAMGR) and is projected to continue expanding its operating margins by an additional 150 basis points through 2028, highlighting a robust long-term growth potential. With strong organic growth that outpaces the MedTech market by around 400 basis points and a diversified product portfolio, Stryker is well-equipped to sustain momentum and capitalize on opportunities in various medical sectors.

Stryker's stock outlook is negatively impacted by decelerating growth, particularly with Mako utilization declining due to increasing competition, coupled with a challenging capital environment. The company faces significant risks including slower orthopedic market growth, potential earnings dilution from acquisitions, and ineffective product launches, which may lead to organic revenue growth slowing to 8% or less. Additionally, inflationary pressures and supply chain challenges further exacerbate the company's financial performance, contributing to a bearish sentiment surrounding Stryker's future earnings potential.