Piper Sandler reiterated an Overweight rating on Stryker (NYSE: SYK) and held a $420.00 price target as the medical technology company approaches its fourth-quarter earnings report, scheduled for Thursday, January 29. The bank's price target implies nearly 18% upside from Stryker's then-current share price of $356.98, and the firm said the stock is trading slightly above a calculated fair value measure.
Analyst consensus in the street remains skewed toward buying the shares, with an aggregate recommendation equivalent to a Buy rating (1.93 on the scale used by the research aggregator). Published price targets among analysts range from $316 at the low end to $465 at the high end.
The research note follows Stryker's mid-November investor day, where the company briefly unveiled a new handheld orthopedic robotic device but disclosed few technical details. Piper Sandler examined the device's patent filing and obtained firsthand impressions from a physician who has seen the product. Based on those inputs, the firm identifies the device as Mako RPS.
Piper Sandler's analysis suggests the compact robot could allow Stryker to gain traction in lower-cost care settings - specifically ambulatory surgical centers - and in select international markets where a smaller, lower-cost system may be more suitable. That positioning would put Stryker in more direct competition with Zimmer Biomet and its THINK Surgical partner in those segments.
The firm estimates the new product could add roughly 30 basis points to consensus revenue forecasts for Stryker in 2028. While Piper Sandler characterizes the device as having a "more-limited feature set" relative to larger robotic platforms, analysts expect it will allow Stryker to reach surgeons who would not otherwise adopt the company's full-featured systems.
Stryker's revenue profile remains sizeable: trailing twelve-month revenue stands at $24.38 billion. The company has shown recent top-line momentum, with revenue growth of 10.95% over the last twelve months. Analysts covering the stock project revenue growth of about 11% for fiscal year 2025.
On the share-price front, Piper Sandler noted Stryker's stock is up modestly year-to-date after an approximate 10% decline during the prior calendar year. The research house expects robust overall results when Stryker releases fourth-quarter figures on January 29. In addition, Piper Sandler sees selective mergers and acquisitions as potential contributors to further improvements in the company's financial performance.
From a volatility standpoint, Stryker has generally traded with low price variability. A five-year beta of 0.9 indicates lower sensitivity to market swings compared with higher-beta names, a characteristic that may appeal to investors seeking relative stability in the healthcare equipment sector.
Beyond the robotics development and earnings preview, Stryker has confirmed several corporate actions and personnel moves. The company announced a 4.8% increase in its quarterly dividend, raising the payout to $0.88 per share. The dividend is payable on January 30, 2026, to shareholders of record as of December 31, 2025.
In manufacturing-related activity, VB Spine LLC completed the acquisition of Stryker's spine implant manufacturing facility in Cestas, France, a move that alters Stryker's global manufacturing footprint in spinal implants. On the executive front, Stryker has named Spencer Stiles as President and Chief Operating Officer, effective January 1, 2026; Stiles will oversee the company's global businesses and strategic initiatives.
Market reactions among research houses have been mixed but generally constructive. Citizens upgraded its rating on the stock from Market Perform to Market Outperform, citing an attractive valuation opportunity. Meanwhile, TD Cowen initiated coverage with a Hold rating, noting Stryker's revenue growth and margin expansion under CEO Kevin Lobo as key drivers of the company's performance.
Taken together, Piper Sandler's reiteration of an Overweight rating and the $420 target reflect confidence in Stryker's near-term earnings trajectory and in the strategic potential of the new handheld robot to extend the company's reach into lower-cost delivery settings. Investors will be watching the January 29 earnings release and any additional detail Stryker provides on product rollout plans, M&A activity, and margin trends.