Medical device firms worth a look – Morgan Stanley

In a note, Morgan Stanley’s David Lewis expects medical device companies to experience a rapid recovery over the next 6-12 months after an “acute impact” from effects of the COVID-19 pandemic (Q1 and probably Q2 are going to be ugly), adding that he does not see any significant liquidity issues facing the sector and patient longs should expect to do well.

Broadly speaking, Mr. Lewis anticipates a negative impact on 2020 revenues of 15% and forecasts revenue and EPS to return to ~90-95% and ~80-95% of normal, respectively, in 2021.

On the large cap front, he likes Boston Scientific (BSX -2.1%), Medtronic (MDT -2.0%), Stryker (SYK -2.3%), Zimmer Biomet Holdings (ZBH -7.1%).

Growth companies worth investigating include iRhythm Technologies (IRTC -5.2%), Axonics Modulation Technologies (AXNX -3.9%), SI-BONE (SIBN -1.0%) and Nevro (NVRO -3.3%)

https://seekingalpha.com/news/3555964-medical-device-firms-worth-look-morgan-stanley