Morgan Stanley Upgrades Medtronic (MDT.US) and Becton Dickinson (BDX.US) to 'Overweight', Citing Strong Recovery Outlook for MedTech Sector

Morgan Stanley stated that the medical technology sector will rebound in the wake of the health crisis. The firm upgraded the ratings of Medtronic (MDT.US) and BD (BDX.US) to “Overweight,” while downgrading Intuitive Surgical, Inc. (ISRG.US) to “Equal-weight.”

The analyst stated that the company's revenue growth will drive its 2021 performance, specifically highlighting Medtronic and Zimmer Biomet (ZBH.US) as the large-cap stocks poised for the strongest recovery.

This year, following a remarkable surge in the stock price of Intuitive Surgical, Inc., the bank downgraded its rating on the company. The bank believes that BD is poised to turn the tide.

Meanwhile, Wells Fargo expects that the backlog of patients in the medical technology industry may exceed normal levels, and anticipates that the performance growth of related companies will accelerate before the second quarter of 2021.