The medtech sector looks more certain to recover in 2021, with Morgan Stanley analysts betting on Medtronic and Zimmer Biomet stocks to perform well next year, according to Seeking Alpha.
Three notes:
1. The analysts predict 2021 performance to be driven by multiple expansion on rising earnings, and label Zimmer Biomet and Medtronic as the "best large caps to play implantable recovery," according to the report.
2. Wells Fargo analysts project industry growth to accelerate by the second half of 2021.
3. Accelerated growth is expected to be driven by the surgical backlog caused by the COVID-19 pandemic earlier this year.