VOL. 125 | NO. 192 | Monday, October 4, 2010
Analyst Downgrades Wright Medical to 'Neutral'
NEW YORK (AP) — A Robert W. Baird & Co. analyst said Friday orthopedic product makers will face sales and reimbursement pressure over the next several quarters.
Analyst Jeff D. Johnson, in a note to investors, said soft surgical sales and the expiration of COBRA health benefits for many leave few near-term catalysts for the industry.
"Given both cyclical and secular concerns, we're neutral at best on the group near term," he said.
He downgraded shares of Wright Medical Group Inc. to "Neutral" from "Outperform", citing risks to the company's extremities segment because of a slowdown in demand and competition.
Meanwhile, he reaffirmed "Neutral" ratings for both Zimmer Holdings Inc. and Exactech Inc., and an "Outperform" rating for Stryker Corp.
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