MedTech 100 roundup: Stocks brought back down again

A week after topping pre-pandemic highs, the medtech industry’s stocks were brought back down to earth in quick fashion.

MassDevice’s MedTech 100 Index — which includes stocks of the world’s largest medical device companies — finished last week at 89.03 (Sep. 11), marking a -0.3% dip from the 89.29 points registered at the end of the week prior (Sep. 4).

However, the slight dip from week-to-week doesn’t show that, just before the Sep. 4 mark, medtech stocks had reached 93.11 points on Sep. 2, coming in nearly a full point ahead of the pre-pandemic high of 92.32, which the market reached on Feb. 19.

During the week, the index dipped down to 88.22 points, which is the lowest total it has reached since it sat at 87.06 on July 16. By climbing back up to 89.03, the index now represents a -4.4% drop from the Sep. 2 high point and a -3.6% drop from the pre-pandemic high set on Feb. 19.

Meanwhile, the S&P 500 Index saw a -2.5% dip from Sep…

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BofA bullish on medtech as surgeries increase

Bank of America analysts say that they are bullish over the medtech industry as surgical procedure recoveries in recent months bode well for the field.

In an analysis published yesterday, BofA said medtech management teams are likely remaining cautiously optimistic amid recovery efforts brough on by the impact of COVID-19, but they are growing in confidence with regard to the quality and durability of demand for their products, with Medtronic’s (NYSE:MDT) recent earnings call and talks with Stryker (NYSE:SYK) suggesting the air of confidence.

Additionally, BofA analysts say that, as innovation pipelines are full, valuations in the industry remain reasonable, there is no drug pricing risk and medtech has outperformed the last three recessions.

Medtronic, Stryker and Baxter (NYSE:BAX) are three companies driving the narrative behind the BofA analysts’ confidence, but they did downgrade Intuitive Surgical (NSDQ:ISRG) from “Buy” to &#…

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