Piper Sandler Bullish on Stryker, Sees 17% Upside Fueled by New Robotic Tech
Investment firm Piper Sandler has reiterated its confidence in medical technology giant Stryker Corporation (NYSE: SYK), maintaining an Overweight rating with a price target of $420. The bullish call, issued by analyst Matthew O’Brien on January 27, suggests a potential upside of over 17% from recent trading levels.
The optimism centers on Stryker's latest innovation: a handheld orthopedic robot identified as the Mako RPS. O’Brien's assessment followed consultations with physicians familiar with the device. Early analysis indicates the Mako RPS is strategically positioned to expand Stryker's footprint into more cost-conscious segments, including ambulatory surgical centers and specific international markets. This move is seen as a direct challenge to competitors such as Zimmer Biomet and its partner THINK Surgical in the rapidly evolving robotic surgery arena.
"This isn't just a product launch; it's a market expansion play," said David Chen, a medtech portfolio manager at Horizon Capital. "By targeting outpatient settings, Stryker is tapping into a high-growth channel where efficiency gains are paramount."
Piper Sandler's endorsement follows other positive signals from Wall Street. Earlier in January, Evercore ISI maintained its Outperform rating on Stryker, albeit with a slightly reduced price target of $390. The firm pointed to recovering end markets and anticipated robust capital expenditure cycles in the medtech sector leading into 2026 as key drivers.
Stryker, a leader with divisions in MedSurg & Neurotechnology and Orthopaedics, has built its reputation on a broad portfolio of surgical equipment, navigation systems, and spinal implants aimed at improving patient care.
However, not all observers share the unbridled enthusiasm. "The price target seems aggressive, banking heavily on flawless execution and immediate market adoption for a new device," commented Lisa Hammond, a skeptical healthcare analyst. "We've seen plenty of 'game-changing' robotics that took years to move the needle. This feels like hype chasing momentum."
In contrast, veteran industry watcher Michael Torres offered a more measured view. "Stryker's track record in integrating robotics is solid. If the Mako RPS delivers on its promise of accessibility, it could indeed open a valuable new front in their battle with Zimmer. The next few quarters of sales data will be critical."
Disclosure: This analysis is based on publicly available information and analyst reports. It is for informational purposes only and does not constitute investment advice.