Stryker Corporation: Top Pick for 2025

Needham analyst has named Stryker Corporation (NYSE:SYK) as its top pick for 2025, emphasizing the company's growth potential from new products, margin improvements, and expected M&A activity. The price target on the stock was raised to $442 from $409.

Strong Growth Potential

The medical device maker is set for robust growth next year with the upcoming launch of:
– Pangea trauma plating system
– LIFEPAK 35 monitor/defibrillator
– New shoulder and spine applications for the Mako surgical platform

Margin Improvement and Earnings Forecast

Needham noted Stryker’s projection for margin improvement in 2025, with projected revenue growth potentially boosting earnings per share.

M&A Activity as a Catalyst

The company’s plans to ramp up merger and acquisition activities could serve as an additional catalyst for growth. Needham's evaluation now relies on Stryker's earnings estimates for 2026, highlighting confidence in its growth trajectory.

Conviction List Inclusion

The brokerage has added Stryker to its Conviction List, replacing Enovis Corp, which remains rated as a “buy.”