Mr. Trump has said he plans to lower the U.S. corporate tax rate and also allow a lower tax rate on cash large corporations hold overseas, according to a 24/7 Wall St. report.
In the report, 24/7 Wall St. outlines a new research report from JPMorgan, which suggests that lowering the U.S. corporate tax rate could prove beneficial for the stocks of the following four medical technology companies.
Baxter International. Deerfield, Ill.-based Baxter International makes hospital and renal products. The company’s shareholders are paid a dividend of 1.16 percent, according to the report. The Wall Street consensus price objective for the stock is $53.25. Baxter shares ended trading Tuesday at $46.07 a share.
Edwards Lifesciences. Irvine, Calif.-based Edwards Lifesciences is a medical equipment company that offers artificial heart valves, among other products. According to the report, Wall Street analysts feel the company’s 2016 acquisition of privately held CardiAQ, which has human implants of transcatheter mitrial valves, was a good move, as Edwards is focused on the mitrial valve opportunity after achieving success in aortic valves. The company also achieved success with transcatheter valve replacement. “The stock [of Edwards] was hit hard recently and may be offering investors an attractive entry point,” the report states.
Intuitive Surgical. Sunnyvale, Calif.-based Intuitive Surgical manufactures the da Vinci Surgical System, a platform for robotically assisted minimally invasive surgery. According to the report, Intuitive Surgical stock has jumped nearly 90 percent since its 2014 lows, partly because of its success in hernia operations. “While robotic assistance for that operation still seems to have a lot of room to grow, it’s important to remember that the market is a forward-looking machine. In addition, there are other procedures where the da Vinci robotic surgical system could add value, and the company has delighted investors with huge profit growth,” the report states.
Zimmer Biomet. Warsaw, Ind.-based Zimmer Biomet, formed out of the 2015 merger of medical device manufacturers Zimmer and Biomet, is a medical device company that offers orthopedic medical devices and joint replacement. According to the report, the company reported weak third-quarter results, which analysts attributed to what they termed as “unforeseen supply issues.” “Management lowered guidance, and at this point it remains unclear exactly how far into 2017 these supply issues will linger, which brings us to question if double-digit earnings-per-share growth is a reasonable goal,” the report states.
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