DXCM - With fundamentals intact MedTech to outperform in 2021 as vaccines drive recovery

Reversing the contraction this year, MedTech could outperform in 2021, J.P. Morgan Securities predict, citing the sector’s potential to combine the ‘strong vaccine-driven recovery trade’ with ‘positive underlying sector fundamentals.’ Despite a less bullish timeline for recovery, a similar view was shared by the analysts from SVB Leerink, who also expect the boom in telehealth to benefit ‘all medtech subsectors.’According to JPM forecasts, in 2021, the industry top-line and bottom-line will expand at 10.1% and 24.8% YoY, compared to an estimated decline of 0.5% and 12.7% YoY in 2020, respectively. The analysts at JPM led by Robbie Marcus term the upcoming year as ‘a tale of two cities,’: a strong back half, benefited from the vaccine rollout, easy comps, and the deferred procedures, contrasting the first half likely impacted from the pandemic headwinds amid the ongoing surge in cases and another post-holiday COVID-19 wave.Despite the near-term uncertainty, they view the ‘underlying fundamentals

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With fundamentals intact, MedTech to outperform in 2021 as vaccines drive recovery