Barclays analysis projects that medtech might be on its way to a stretch of “outperformance” even in the wake of the COVID-19 pandemic.
According to SeekingAlpha, the report cited eight reasons that make the investment bank bullish on the industry in the coming years, starting with what it calls “robust innovation.”
On top of the evolving innovation in medtech, Barclays expects the canceled procedures of 2020 (as a result of COVID-19) to return, while new technology could increase diagnoses.
Direct-to-consumer advertising, a potential return to “normality” in a post-pandemic scape, surveys indicating a resurgence in elective surgeries, healthy balance sheets and an aging population as a tailwind round out the reasons why Barclays expects success for medtech over the next several years.
Medtech companies that Barclays stands “overweight on” include Abbott (26.72% upside), Boston Scientific (18.55% upside), Dexcom (41.54% upside), Edwards Lifesciences (13.87% upside), Insulet (15.54% upside) and Zimmer Biomet (25.28% upside), all according to analyst ratings from Benzinga.
Cardiovascular Systems fell under “equal-weight” with no upside or downside from Barclays’ perspective, while some equal-weight companies still had upside, including Baxter (12.97%), BD (11.43%) and Medtronic (12.86%).
Stryker (8.94% upside) and Tandem Diabetes Care (7.84% upside) fell into Barclays’ underweight category, despite their remaining upside.