Morgan Stanley Maintains Positive MedTech Outlook Despite Setbacks in 2024, Upgrades Intuitive Surgical And Stryker, Downgrades Nevro And Glaukos
Last year, Morgan Stanley upgraded its outlook for the U.S. MedTech sector to “Attractive,” believing the concerns around GLP-1s were already reflected in stock prices and that fundamentals were strong.
However, this view didn’t play out as expected, mainly due to unforeseen, company-specific issues, such as DexCom, Inc’s (NASDAQ:DXCM) unexpected Q2 channel mix challenges, Edwards Lifesciences Corporation’s (NYSE:EW) slowdown in TAVR procedures, TransMedics Group, Inc’s (NASDAQ:TMDX) seasonal impacts, and iRhythm Technologies, Inc’s (NASDAQ:IRTC) DOJ investigation.
Morgan Stanley is bullish on the MedTech industry as volumes and pipelines continue to be strong into 2025 despite a shakey 2024.
The analyst also adds that MedTech seems less exposed to potential delays from extended FDA regulatory pathways than other healthcare sectors, given its lower reliance on PMAs and clinical-trial-heavy products.
The analyst adds that while single-stock surprises are inevitable, the overall outlook for the sector heading into 2025 remains favorable.
Morgan Stanley upgraded the outlook on Intuitive Surgical Inc (NASDAQ:ISRG) and Stryker Corp (NYSE:SYK), moving both …
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