Treace Medical price target raised to $16 from $12 at Truist

Truist raised the firm’s price target on Treace Medical to $16 from $12 and keeps a Buy rating on the shares as part of a broader research note, turning more positive on the MedTech industry heading into FY24. The firm is citing dwindling recession fears, a downward interest rate bias/perception, a “more pragmatic” view toward the GLP1 overhang/impact, and an attractive sector growth profile for MedTech next year. After a “tough” 2023 in healthcare, MedTech could be a relative destination for funds within healthcare and even “inter-sector” as a “beta/growth” segment that underperformed, the analyst tells investors in a research note. Truist adds that the stock was among the biggest 2023 dislocations, highlighting the name as having room to play valuation “catch-up” from below-peer valuations in addition to the second-half catalysts to drive potential valuation re-rates.