The September quarter saw the biggest plunge in medical-device stocks since 2020s lockdowns. Dragging them were fears that new weight-loss drugs will slash demand for devices that treat diabetes, sleep problems, and other weight-related conditions.
Sour sentiment on device stocks has compelled Petrone and most other medtech analysts to reduce their price targets. But feedback from doctors convinces him that September-quarter sales and earnings for most of the companies will be okay. The Mizuho analyst doesn’t cover diabetes-device stocks such as DexCom and Insulet that have suffered some of the steepest selloffs. Businesses that treat sleep apnea also lost favor, and the analyst thinks that investors could be pleasantly surprised by September results from ResMed and Inspire Medical Systems . He rates both shares at Buy.
September-quarter sales volumes were also good for ResMed, Petrone believes. In the long term, weight-loss drugs may cut demand, but he figures ResMed will show sales of $4.6 billion, and earnings per share of $7.04, when it reports on Oct. 26.
Malaysia Malaysia Latest News, Malaysia Malaysia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Source: NBCLA - 🏆 319. / 59 Read more »
Source: NBCNewYork - 🏆 270. / 63 Read more »