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  "documentTitle": "Stryker Corp. (SYK)",
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  "authorName": "Ben Axler",
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  "presentationDate": "2022-04-06 00:00:00",
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      "kind": "callout",
      "text": "5% Upside To Sell-Side Average Price Target Is A Poor/Risk Reward Relative To Our Conservative Estimate of 35% Downside",
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      "text": "We Believe Stryker Is Caught In A Margin Squeeze And Delaying Bad News",
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      "text": "Historical Bull Case Increasingly Hard To Justify Now That Stryker Is Bigger With Less Financial Flexibility",
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      "text": "Debt-Fueled Acquisition Roll-Up Is Hitting A Wall And No Longer Producing An Attractive ROIC",
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      "text": "Debt-Fueled Acquisition Roll-Up Is Hitting A Wall And No Longer Producing An Attractive ROIC",
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      "text": "downside risk: 35% - 75%",
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      "text": "Stryker's shareholders have enjoyed an impressive ride since the start of 2009... Stryker must cease more acquisitions and forgo increasing its dividend or repurchasing stock in favor of deleveraging.",
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      "text": "Sell-side analysts expect 110 basis points of gross margin expansion... We expect deferred capex spending... revenue targets are at risk.",
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      "text": "Our research shows that Stryker has long suffered from inventory management issues... failed miserably, was impaired, and has been a sunk cost to investors for over $500 million.",
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      "text": "Our estimates ignore what we view as egregious non-cash add-backs... Valuing Stryker at multiples closer to the industry average, we see 35% - 75% downside to $67.00 - $174.50 per share.",
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      "text": "Based on our behavioral analysis of Stryker management, we believe it often delays bad news as long as possible.",
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      "text": "We believe that during COVID-19, Stryker worked down excess inventory... Stryker's products are largely deflationary... Mako, are now experiencing double digit pricing pressures.",
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      "text": "We believe Stryker left investors flat-footed... We believe Omicron and global world war fears have delayed Stryker's recovery.",
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      "text": "75% of sell-side analysts have \"Buy\" or \"Market Outperform\" recommendations... implies just 5% upside. In light of our concerns... we believe holding shares at this level represent a poor risk / reward.",
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