Several medical device companies took hits yesterday after analysts on Wall Street downgraded their stocks, on a day when the major market indices each closed up a hair, and even medtech firms that enjoyed upgrades came under pressure.
Globus Medical (NYSE:GMED) suffered the most after Morgan Stanley analyst David Lewis cut his rating on the stock from “overweight” to “equal-weight,” sliding -8.5% to a $39.61-per-share close yesterday, compared with the prior day’s closing price.
In fact, Lewis’s downgrades led the pack in terms of impact, taking Insulet (NSDQ:PODD) and Hologic (NSDQ:HOLX) shares down some -7.4% and -6.5%, respectively. Here’s a look at some of yesterday’s downgrade action:
|Company||Analyst||Old rating||New rating||Close 1/2/19||%|
|Globus (GMED)||Morgan Stanley||Overweight||Equal-Weight||$39.61||-8.5%|
|Insulet (PODD)||Morgan Stanley||Hold||Hold*||$73.43||-7.4%|
|Hologic (HOLX)||Morgan Stanley||Equal-Weight||Under-Weight||$38.42||-6.5%|
|Henry Schein (HSIC)||Robert W. Baird||Outperform||Neutral||$76.39||-2.7%|
|Smith & Nephew (SNN)||JP Morgan||Overweight||Neutral||$36.40||-2.6%|
|Bayer (BAYN)||JP Morgan||Overweight||Neutral||$17.40||-1.0%|
|*cut price target|
|Company||Analyst||Old rating||New rating||Close 1/2/2019||%|
|Tactile Systems (TCMD)||Northland Capital||Under Perform||Market Perform||$44.59||-2.1%|
|Stryker (SYK)||Evercore ISI||In-line||Outperform||$154.50||-1.4%|
|Zimmer Biomet (ZBH)||Citigroup||Neutral||Buy||$102.28||-1.4%|
|Bausch Health (BHC)||Piper Jaffray||Neutral||Overweight||$20.23||0.1%|
|Baxter (BAX)||Morgan Stanley||Under-Weight||Overweight||$65.30||0.8%|
|Apollo Endosurgery (APEN)||Northland Capital||Under Perform||Market Perform||$3.65||5.8%|
By way of comparison, the three major U.S. market indices all closed up a hair yesterday, with the Dow Jones Industrial Average closing up 0.1% at 23,346.24. The S&P 500 also closed up 0.1%, at 2,510.03, and the NASDAQ index ended at 6,665.94, up 0.5%.
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