© Reuters. Alcon, Cooper, Medtronic preferred names at Mizuho
By Sam Boughedda
Mizuho analysts said in a note on medtech and diagnostics stocks on Thursday that the firm’s top longs include Alcon (NYSE:), Cooper Companies (NYSE:) and Medtronic (NYSE:).
The analysts said in the memo to clients that they see many of the same themes from this year lingering into 2023, including “1) hospital health, 2) recession fears, and 3) inflation.”
Conversely, they also believe the “pump feels primed for several tailwinds that could drive valuations higher,” such as improving procedure volumes, a larger-scale M&A, and the return of the IPO market.
“We are launching coverage on Alcon (ALC, $85) and Cooper Companies (COO, $375) at Buy with both ratings reflecting the benefits to ophthalmology proving relatively more insular to other areas of Medtech in prior recessions coupled with benefits of recent/ongoing product launches providing tailwinds into next year,” the analysts added.
“Our preferred large-cap names are ALC, COO and MDT, given we see: 1) ample portfolio balance for recession, 2) new product launches (e.g. RDN, IOP drops, MiSight), 3) exposure to high-growth end-markets (e.g. Glaucoma, TAVR, LAA, robotics), and [4]3) multiple R&D shots-on-goal over next 3-years.”
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