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No. of Recommendations: 3
Analyst downgrade today:

Analyst Joanne Wuensch lowered her rating on both companies to "Market Perform" from "Outperform" because of a growing concern that the U.S. recession will lead to higher borrowing expenses, less financing, losses on investments and further cuts in hospital spending.

Recent strength in the dollar could also reduce revenue for each company, she added, because as the dollar gets stronger relative to other currencies, exchange rates become less favorable. That hurts sales for companies that do significant amounts of business overseas.

Wuensch pared her 2009 and 2010 revenue estimates. She reduced her price target on Stryker stock to $42 per share, down from $68, and her target on Smith & Nephew shares to $39 from $55.

But late in the day SYK announced a dividend increase:

I worked with Steve MacMillan (SYK CEO) when he was at the McNeil division in J&J. He is a fairly typical marketing guy. Made a ton of money when he joined Stryker. He is being tested now.

Looks like the easy golden days at SYK are over, but the current price seems good to me nevertheless.

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