BUZZ-Analysts see risks for elective-procedure medtechs after HCA cuts profit forecast
ZBH•Zimmer Biomet seen as most exposed
The brokerage said Zimmer Biomet is most exposed due to its orthopedic focus, while Intuitive Surgical, GE HealthCare and Stryker could also face headwinds from weaker hospital capital spending.
RBC said electrophysiology, interventional cardiology and structural heart procedures remain relatively resilient, favoring names such as Johnson & Johnson, Edwards Lifesciences, Abbott, Boston Scientific and Medtronic.
Device stocks fall after HCA warning
HCA's warning weighed on device stocks on Tuesday, with Intuitive Surgical down 6.8%, Stryker down 6.2%, Medtronic down 5.1%, Boston Scientific down 4.5%, Abbott down 3.4% and Zimmer Biomet down 3.2%.
Citi survey suggests deferred demand may return
Citi's survey of 40 hospital executives showed about 70% reported ACA-related volume headwinds in Q2, but 86% expect deferred patients to return in the second half of 2026, suggesting pressure may be temporary rather than structural.
RBC sees pressure on elective-procedure medtechs
RBC Capital Markets said medical device makers with significant elective procedure exposure could face pressure heading into second-quarter earnings after HCA Healthcare's warning on weaker surgical volumes and rising uninsured patient levels.
RBC's discussions with the CFO of a Massachusetts-based hospital pointed to procedure volumes running about 5% lower over the past three months, driven largely by delayed elective surgeries, especially orthopedics.
