>>> Brokers Upgrades & Downgrades

>>> Up
*JENOPTIK RAISED TO OVERWEIGHT VS NEUTRAL AT HSBC
*NOBEL BIOCARE RAISED TO OUTPERFORM VS NEUTRAL AT CREDIT SUISSE
*TELENET RAISED TO BUY VS NEUTRAL AT UBS

>>> Down
*ANGLOGOLD ASHANTI CUT TO NEUTRAL VS OVERWEIGHT AT HSBC
*CATLIN CUT TO UNDERPERFORM VS NEUTRAL AT CREDIT SUISSE
*CSR CUT TO HOLD VS BUY AT JEFFERIES
*GAZPROM REMOVED FROM UBS LEAST PREFERRED LIST
*FORD OTOSAN CUT TO EQUALWEIGHT VS OVERWEIGHT AT BARCLAYS
*KING DIGITAL CUT TO SECTOR PERFORM AT RBC CAPITAL
*NOKIAN RENKAAT CUT TO NEUTRAL VS BUY AT UBS
*PRADA CUT TO UNDERWEIGHT VS NEUTRAL AT HSBC
*NOVATEK REMOVED FROM UBS MOST PREFERRED LIST, BASHNEFT ADDED

>>> PT Change
*ARSEUS PT RAISED TO EU51 FROM EU47 AT ING

>>> Call
*EURONEXT RATED NEW MARKET PERFORM AT BMO CAPITAL, PT EUR21
*FINCANTIERI RATED NEW BUY AT CITI; PT EU0.85
*FINCANTIERI RATED NEW OUTPERFORM AT MEDIOBANCA; PT EU0.82
*FINCANTIERI RATED NEW OVERWEIGHT AT MORGAN STANLEY
*MOBILEYE RATED NEW OUTPERFORM AT RBC CAPITAL
*MOBISTAR RATED NEW NEUTRAL AT UBS; PT EU15
*NN GROUP RATED NEW NEUTRAL AT EXANE; PT EU22.4

>>> Telecom Italia CEO to meet today with Vivendi chairman to negotiate on possi

Telecom Italia CEO to meet today with Vivendi chairman to negotiate on possible Telecom Brasil/GVT merger - report
Marco Patuano, CEO of Telecom Italia (TI) is to meet Vincent Bollore, chairman of Vivendi today, 13 August, to discuss a merger with TI's Tim Brasil and Vivendi’s GVT, Italian-language daily Il Messaggero reported. The report cited unspecified rumours said that Patuano and Bollore would examine the synergies and advantages that a merger between the two Brazilian telcos could bring.

The report said that a draft of the merger proposal is now ready.


Source Il Sole 24 Ore

>>> What to look at today - 13/08/2014 -...with a view...

US Market closed slightly lower, small cap leaded the move on the downside (Russel 2k -0,7%), US followed European market after disap data, Eurozone ZEW Economic Sentiment plunged to 23.7 from 48.1 (expected 41.3), while Germany's ZEW Economic Sentiment dropped to 8.6 from 27.1 (consensus 18.2). volume were low @ 531mil shares,even with weaker mrket we didn't see any rush on VIX, VIX @ 14,13 -0,7%...After Hours: COVR +12.9%, RWC +8.6%, OPWR +6.9%, LXFT -27.7%, KING -20.7% (Lower numbers), QNST -9.8%, FOSL -2.2% following earnings/guidance..Initial estimate of Japan Q2 GDP saw the economy contract by the biggest margin since the great earthquake over 3 years ago, but was still not as bad as expected despite JCER warning real-terms contraction would be bigger than estimated last month. BOJ released the minutes of mid-July meeting, stating it would examine risks and modify policies if necessary. China posted a surprising slump in July lending activity, prompting analyst speculation of a possible easing by the PBoC. Nikkei +0,20% Hang Seng -0,23% Shanghai -0,59%

Eur$ 1.3364 S&P +0,09% FTSE +0,20% EuroStoxx +0,53% Dax +0,53% SMI+0,15%

Macro
- Japan 2Q Annualized GDP Falls 6.8% Q/q; Est. -7%
- Weidmann Says Sticking More Or Less to German Economic Forecast
- China July Industrial Output Rises 9.0%, Est. 9.2%

Keep an eye on :
- ABG/P SM : Abengoa 1H Net Rises 2% on Yr to EU69m
- AIR FP : Airbus Unit Has Trouble Making Airplane Doors: Handelsblatt
- NDA GY : Aurubis Says Resumed Positive Development in 3Q, Repeats Outlook
- BBY LN : Carillion is in no position to launch a hostile takeover for Balfour Beatty, CEO
- BES PL : Eurofin May Have Been Key in Espirito Santo Demise: WSJ Link
- CWI AV : Conwert Sees EU22m-EU24m 1H Loss Due to One-Time Charges
- CON SW : Conzzeta 1H Revenue, Profit Rises; Sees Similar 2H Results
- CRBN NA : Corbion 2Q Ebitda Ex-Items Drops 2.9%; Sees Similar Markets 2H
- ANN GY : Deutsche Annington May Want to Form Bank, CEO Tells Handelsblatt
- DB1 GY : Deutsche Boerse Outlook to Stable From Negative by S&P
- DEQ GY : Deutsche Euroshop 1H Consolidated Profit Up 23% to EU46.3M
- EOAN GY : EON 1H Underyling Net Income Beats Ests.; Confirms 2014 Outlook, Sees Generation Unit Yr Ebitda Up Significantly Y/y
- FLUX BB : Fluxys Seeks Bigger Stake in Dunkirk LNG Terminal, De Tijd Says
- GFK GY : GFK 1H Cons. Total Income Declines 19%, Sales Down 4%
- GFJ GY : Gagfah 1H Recurring FFO Up 95%; Lifts 2014 Div. Target, Outlook
- HDD GY : Heidelberger Druck Narrows 1Q Loss, Confirms Forecast
- MC FP : LVMH’s PE Unit May Invest in YG Entertainment of S. Korea: Maeil
- MGN GY : Mologen Confirms 2014 Outlook
- OMV AV : OMV CEO Seeks to Break Up Gas Division, Fire Floren, Presse Says
- PRADA (1913 HK) : Prada Downgraded as Innovation From Zara-Like Model Wanes: HSBC
- RWE GY : RWE to Sell And Lease Back Essen Headquarters, Handelsblatt Says
- SCHP VX : Schindler 1H Net CHF371M as Sales, Orders Gain
- SN/ LN : could be a target for stryker, 20% premium would make sens
- STCBV FH : Stockmann Posts Surprise 2Q Loss on Weak Russia, Finland Markets
- STMN SW : Straumann Buys About 12% of RODO Medical's Shares
- SLHN VX : Swiss Life 1H Net Beats; Buys Corpus Sireo For EU210m
- SZG GY : Salzgitter Posts 2Q Pretax Profit, Confirms 2014 Forecasts
- TLM CN : Talisman Energy to begin sale of Kurdish assets
- TKA AV : Telekom Austria 2Q Ebitda Misses Ests., Cuts Revenue Forecast
- WDI GY : Wirecard Sees Business to Develop `Strongly` in 2H, Whole 2014

(BFW) Tax Inversion Reform Unlikely to Sink M&A Recovery, Goldman Says

Tax Inversion Reform Unlikely to Sink M&A Recovery, Goldman Says
2014-08-13 05:54:37.827 GMT


By Gaurav Panchal
Aug. 13 (Bloomberg) -- With fundamentals for robust M&A
cycle still firmly in place, potential reform is unlikely to
alter positive outlook on M&A, Goldman Sachs says.
* Further growth in U.S. Strategic, Sponsor M&A, and European
M&A capable of offsetting any drags from a decline in tax
inversion deals: Goldman
* Tax inversion deals accounted for 9% of 2014 total global
M&A announcements, nearly 10% of total fee backlog: Goldman
* Says inversion deal flow extremely concentrated with
only 14 deals in 2014 to date, largely concentrated in
Healthcare
* Says standalone M&A boutiques’ exposure to deal flow very
limited
* Within coverage, EVR (neutral) only firm with any
meaningful level of exposure, ~14% of its current fee
backlog or est. 5% EPS exposure
* LAZ (conviction buy) most insulated in case of a
slowdown in inversion activity: Goldman


Link to Company News:{EVR US <Equity> CN <GO>}
Link to Company News:{GHL US <Equity> CN <GO>}
Link to Company News:{LAZ US <Equity> CN <GO>}
Link to Company News:{MC US <Equity> CN <GO>}

For Related News and Information:
First Word scrolling panel: {FIRST<GO>}
First Word newswire: {NH BFW<GO>}

To contact the editor responsible for this story:
Gaurav Panchal at +44-20-7392-0511 or
gpanchal2@bloomberg.net

WSJ : SEC Launches Examination of Alternative Mutual Funds

SEC Launches Examination of Alternative Mutual Funds
BlackRock, AQR Capital Management Among Firms Contacted


The Securities and Exchange Commission has launched a broad examination of alternative mutual funds, according to people familiar with the matter, kicking off regulatory scrutiny of one of the hottest and most controversial investment products to be offered to small investors.

The so-called funds "sweep" includes examinations of large investment firms such as BlackRock Inc. BLK +0.79% and AQR Capital Management LLC but also smaller firms that previously didn't offer mutual funds, according to some of the people.

The agency's goal appears to be to gather information about the industry, not necessarily to deliver enforcement actions, say people familiar with the matter. Still, advisers to fund companies fear the examination could put a chill on the industry's aggressive growth plans for these popular new products.

Alternative funds, or "liquid alternative funds," describe a class of mutual funds that employ hedge-fund-like strategies, including betting on some stocks and against others, trading futures contracts and using derivatives to increase leverage.

Fund companies have marketed them as a way to hedge against market risk and as a cheaper way for individual investors to gain access to strategies once available only to sophisticated investors. Skeptics say some of the funds are watered-down versions of hedge funds and that some individual investors may not understand what they are getting.
Alternative funds have surged in popularity. The category saw inflows of $40.2 billion in 2013, up from $14.5 billion the previous year, according to fund research firm Morningstar Inc. MORN -1.00% The amount of money in the funds jumped by 63% last year, from $158 billion to $258 billion, with new funds launching regularly, according to the SEC. So far this year through July, investors have poured $16.8 billion into the funds.

The SEC is focusing on the liquidity of the funds, their use of leverage—or borrowed money to amplify wagers—and the degree of oversight provided by the funds' boards, some of the people said. The regulator is questioning not just the funds' managers, but, in some cases, has also sent letters asking to speak with mutual fund board members, these people said.

The regulator had previously signaled it would likely start its sweep of such funds this summer or fall. It's not clear how many funds have been contacted.

In a statement, Jane Jarcho, head of the SEC's investment company and adviser exams, said the agency plans to complete exams of about 30 firms offering such funds by April. Depending on the results, she said, the SEC will decide whether or not to examine more fund companies. Ms. Jarcho confirmed the examinations are under way but declined to give additional details.

Some other firms that have boosted their offerings in the space or are launching such funds for the first time include Goldman Sachs Group Inc., GS -0.08% Blackstone Group BX -1.45% LP, Bank of New York Mellon Corp. BK -0.05% and Pacific Investment Management Co.

A bevy of prominent hedge-fund firms has signed on to start or help advise the funds, encouraged by the prospect of attracting what they view as a relatively stable base of money. The funds can help firms grow: When AQR Capital Management LLC, a pioneer in the space, launched its first such mutual fund in 2009, it managed $20 billion. It managed $113 billion at the end of June, including roughly $15 billion in both traditional and alternative mutual funds.

But not all fund companies are on board. Vanguard Group Inc., the country's largest mutual fund firm, told The Wall Street Journal in May that it was avoiding expanding into the space. Some financial advisers also say they won't offer them because of their complicated strategies that are confusing to small investors, and lack of long-term track records.

The regulator has previously raised concerns about the funds. Andrew Bowden, director of the SEC's office of compliance inspections and examinations, said at a conference in March that the funds will be an area of focus for the agency.

"The use of hard to value and/or illiquid securities in an open-end mutual fund, which requires daily valuation and offers daily liquidity, is fraught with risk," Mr. Bowden said, according to a transcript of his remarks.

"Alternative funds are the bright, shiny object…but they are a sharp object," Mr. Bowden said.

In one letter to an investment adviser offering alternative mutual funds, a copy of which was reviewed by The Wall Street Journal, the SEC sought information including: a trade blotter showing all the trades made for the funds; any internal reports on the liquidity of the funds' holdings; valuation and risk management policies for the firm, its subadvisers and its funds; results of stress tests on the funds; and minutes of recent board meetings.

FT : Record income gap fuels US housing weakness

Record income gap fuels US housing weakness

A for sale sign stands outside of a home in Princeton, Illinois, U.S., on Wednesday, May 30, 2012. The number of Americans signing contracts to buy previously-owned homes fell in April by the most in a year, indicating the U.S. housing recovery remains uneven. Photographer: Daniel Acker/Bloomberg©Bloomberg
The income gap between America’s richest and poorest metropolitan regions has reached its widest on record, shaping an uneven housing recovery that threatens to hold back the broader revival of the world’s largest economy.
The gap has narrowed and widened in past cycles, but the rebound from the most recent financial crisis has seen the ratio hit its most unequal since data collection began 45 years ago, fuelling policy makers’ concerns.

US Commerce and Labor Department data for the 100 largest metropolitan areas by population, analysed for the Financial Times by property website Trulia, found the income disparity between the 10th most expensive region and the 90th by home prices in 2013 hit its widest since records began in 1969.
The research shows Boston – ranked at 10 – reporting a per-capita income 1.61 times that of Cincinnati ranked at 90. At its low point in 1976, the gap was 1.36 times, between San Francisco and El Paso.
A patchy labour market recovery has meant significant variations in job and income growth between regions across the US, which in turn has intensified the divergences across the country’s housing markets.
“Housing markets are playing out at very different speeds partly as a result of the lack of geographical breadth in the labour market. Certain sectors of the economy are performing better than others, propelling some housing markets over others,” said Fannie Mae economist Mark Palim.
While some areas are experiencing bubble-like conditions, others are flailing. In Austin, Texas, a surge in technology jobs has driven demand. But in Akron, Ohio, which is struggling to boost employment through a new manufacturing base, house purchases have been more muted. In the government town of Sacramento, California, anxious homebuyers are waiting on the sidelines after being priced out by investors.
US housing: Battle scars

Stanley Fischer, Janet Yellen’s deputy chairman at the Federal Reserve, highlighted the central bank’s concern about housing in a speech this week. “The housing sector was at the epicentre of the US financial crisis and recession and it continues to weigh on the recovery,” he said.
In contrast to previous recoveries, he noted “residential construction [has been] held back by a large inventory of foreclosed and distressed properties and by tight credit conditions for construction loans and mortgages”.
How cities fared through the boom and bust, and the extent of state and local government control over foreclosures, have dictated housing market performance.
But job and income growth are playing an outsized role, Mr Palim added, particularly as mortgage interest rate rises and home price increases affect affordability.
US income per capita
The number of Americans in work has surpassed the pre-recession peak. But there has been little lower and middle wage growth, constraining demand for houses across much of the country.
The rebound in construction, led by apartments, has been concentrated in pockets of the country where incomes are among the greatest. Six of Trulia’s 10 highest-income areas – including San Jose, Boston and New York – also had the strongest residential construction performance by permits in 2013 compared with past norms.
Economists see construction activity as a better gauge of an improving housing market than prices, which have been skewed by an influx of investor buyers since 2012.

>>> Talisman Energy to begin sale of Kurdish assets

Talisman Energy to begin sale of Kurdish assets
Talisman Energy will sell all or a portion of its Kurdistan assets in Iraq within the next few months, according to a newswire report.

The Canadian producer has selected an advisor to handle the sale and had planned the sale for sometime in the third quarter, a company spokesman told Reuters. In a few weeks, the sales process will begin despite fighting in the region.

In Kurdistan, Talisman owns one block, the Topkhana, and holds a stake in the Kurdamir block with WesternZagros Resources Ltd. The energy company has long said it intends to sell the two properties.

Combat operations in Iraq and Kurdistan may scare off potential buyers, particularly since many oil companies, like Chevron and Exxon Mobil have already evacuated their personnel from the region.


Source Reuters

>>> Asian Update

Asian Market Update: China lending slumps, Japan Q2 GDP contraction less than expected

***Economic Data*** - (JP) JAPAN Q2 PRELIMINARY GDP Q/Q: -1.7% (biggest decline in 5 years) V -1.8%E; GDP NOMINAL Q/Q: -0.1% V 0.0%E; ANNUALIZED GDP Q/Q: -6.8% V -7.0%E - (CN) CHINA JULY AGGREGATE FINANCING (CNY): 273.1B V 1.5TE (lowest since Oct 2008) - (CN) CHINA JULY NEW YUAN LOANS (CNY): 385.2B V 780BE (lowest since Jan 2010) - (CN) CHINA JULY M2 MONEY SUPPLY Y/Y: 13.5% V 14.4%E; M1 MONEY SUPPLY Y/Y: 6.7% V 8.6%E - (AU) AUSTRALIA AUG WESTPAC CONSUMER CONFIDENCE INDEX: 98.5 V 94.9 PRIOR; M/M: 3.8% (3th consecutive rise, highest increase in 11 months) V 1.9% PRIOR - (AU) AUSTRALIA Q2 WAGE COST INDEX Q/Q: 0.6% (3-quarter low) V 0.7%E; Y/Y: 2.6% V 2.6%E - (KR) SOUTH KOREA JULY UNEMPLOYMENT RATE: 3.4% V 3.5%E; Participation rate 63.2% v 62.4%; record high for 3rd consecutive month - (KR) SOUTH KOREA JULY BANK LENDING TO HOUSEHOLD (KRW): 492.0T V 488.9T PRIOR

***Index Snapshot (as of 02:30 GMT)*** - Nikkei225 +0.1%, S&P/ASX -0.3%, Kospi +0.4%, Shanghai Composite +0.1%, Hang Seng +0.1%, Sept S&P500 +0.1% at 1,932

***Commodities/Fixed Income/Currencies*** - Dec gold -0.1% at $1,309, Sept crude oil -0.2% at $97.17/brl; Sept Copper falls below $3.14/lb following soft China lending data; 6-week lows - (US) API PETROLEUM INVENTORIES: CRUDE: +0.23M (first build in 7 weeks) v -2Me, GASOLINE: +2.7M v -1.5Me, DISTILLATE: -2.6M v +0.5Me - (JP) BOJ offers to buy ¥110B in JGB with maturity less than 1-yr, ¥100B in 10-25yr JGB and ¥30B in JGB with maturity over 25-yr - (AU) Australia MoF (AOFM) sells A$600M in 2025 Bonds; avg yield: 3.5296%; bid-to-cover: 3.23x - USD/CNY: (CN) PBoC sets yuan mid point at 6.1533 v 6.1517 prior setting (1st weaker setting in 5 sessions)

***Market Focal Points/Key Themes*** - Initial estimate of Japan Q2 GDP saw the economy contract by the biggest margin since the great earthquake over 3 years ago, but was still not as bad as expected despite JCER warning real-terms contraction would be bigger than estimated last month. Among components, private consumption was down 5% - bigger drop than 3.7% expected - and net exports contribution was at -1.1%. Govt consumption was the only positive component, rising 0.4% from -0.1% in Q1. Speaking after the GDP release, Econ Min Amari said gradual recovery trend is continuing and policy response would be flexible. Amari did not allude to the possibility of further stimulus, attributing the weakness to the impact of sales tax hike and stating that no extra budget is needed at this point. Concurrently, BOJ released the minutes of mid-July meeting, stating it would examine risks and modify policies if necessary. Recall those minutes are from the meeting that preceded one last week when BOJ cut its view on exports and output. USD/JPY was little changed on the GDP release, remaining below ¥102.30.

- China posted a surprising slump in July lending activity, prompting analyst speculation of a possible easing by the PBoC. New Yuan Loans were at the lowest level in nearly 6 years, while aggregate financing reflected the steep decline in the shadow banking activity. Housing sector weakness was also reflected in the data, as mortgage lending fell to CNY206.2B from CNY357.5B prior. PBoC said money supply, credit level and aggregate financing growth are still in reasonable range, noting weaker loan demand due to slowdown of economy and property market. PBOC added it would continue prudent monetary policy with timely fine-tuning. The balance of July economic data - industrial output, retail sales, fixed investment - are expected shortly.

- Out of Australia, Aug Westpac consumer Sentiment improvement tracked better NAB business sentiment released overnight, rising at the fastest rate in 11 months. Westpac economist noted "households do appear to be gradually feeling more secure in their employment despite the negative reception to the budget," adding another month of employment data is needed to explain the disappointing print in July figures. CBA was down nearly 1% on FY14 results showing only a modest rise in profits and net interest margins, with analysts also noting the rise in bad debt charges in the second half. Suncorp rose nearly 3% on rising FY14 profits and a 33% increase in dividend payout.

- In the Middle East, Egypt mediators have ironed out a compromise to Israeli and Hamas negotiators as 72-hour ceasefire appears to be holding. Egypt deal involves an easing on Gaza blockade, though Hamas continues to demand for the blockade to be lifted. US Defense Sec Hagel also stated 130 more US advisors have arrived in the north Iraq city of Erbil, while an unnamed official said US is contemplating leading an international military operation on the ground to help rescue thousands of trapped Yazidi refugees from ISIS militants.

***Equities*** US markets: - FLT: Guides initial FY15 $6.25-6.45 (incl acquisition) v $5.87e, Confirms Agrees to Acquire Comdata for $3.45B; +3.2% afterhours - FOSL: Reports Q2 $0.98 v $0.96e, R$773.8M v $771Me; -2.2% afterhours - JDSU: Reports Q4 $0.14 v $0.13e, R$449M v $436Me, guides Q115 $0.08-0.12 v $0.15e, R$405-425M v $443Me; -3.5% afterhours - CREE: Reports Q4 $0.42 v $0.41e, R$436M v $446Me, guides Q1 $0.40-0.45 v $0.46e, R$440-465M v $468Me; -6.5% afterhours - KING: Reports Q2 $0.59 v $0.59e, R$593M v $618Me; Announces $150M special dividend (approx $0.47/shr); reduces outlook for FY14; -20.8% afterhours

Notable movers by sector: - Consumer Discretionary: Matsumotokiyoshi Holdings 3088.JP -5.5% (Q1 results); Dentsu 4324.JP +2.8% (Q1 results); Echo Entertainment Group EGP.AU +4.1% (FY14 results) - Financials: Commonwealth Bank of Australia CBA.AU -0.8% (FY14 results), Xinhu Zhongbao 600208.CN +10.1% (resumes trading); New China Life 1336.HK +1.2% (July YTD operating results); Suncorp-Metway SUN.AU +2.8% (FY14 results); Computershare CPU.AU -3.9% (FY14 results) - Materials: Pacific Metals 5541.JP +2.2% (Q1 results); OZ Minerals OZL.AU -2.7% (H1 results) - Technology: Tongda Group 698.HK -3.4% (H1 results); Ulvac 6728.JP -23.8% (FY13/14 results); Carsales.com CRZ.AU -3.0% (FY14 results) - Healthcare: CSL Limited CSL.AU +3.1% (FY14 results); Primary Healthcare PRY.AU -4.3% (FY14 results) - Telecom: Amcom Telecommunications AMM.AU -4.1% (FY14 results)

>>> Balfour Beatty CEO scotches talk of hostile bid from Carillion

Balfour Beatty CEO scotches talk of hostile bid from Carillion

Carillion is in no position to launch a hostile takeover for Balfour Beatty, according to Balfour Executive Chairman Steve Marshall, Building.co.uk reported on 1 August. Marshall said arrangements agreed by the two UK-listed construction companies before initial merger negotiations collapsed on 31 July prevented such a move. He added that hostile bids require money, the report said.

Marshall went on to say that Balfour was no longer interested in a deal with Carillion, even if Carillion were to alter its stance opposing Balfour’s planned disposal of its Parsons Brinckerhoff subsidiary. He stated that Carillion’s proposal was evidently non-viable and would have left Balfour Beatty’s investors vulnerable to value loss, the report said.

Following Marshall’s comments, Carillion proposed revised terms and the two sides re-entered negotiations but Balfour went on to reject the proposal on 11 August.

Marshall said no other prospective buyers have contacted Balfour Beatty regarding an acquisition or a merger, the item reported.

The report noted that Carillion’s 2013 accounts showed GBP 215m net borrowing. London-based Balfour Beatty has a GBP 1.64bn market cap while Carillion, based in Wolverhampton, is worth GBP 1.38bn on the LSE.


Source Building

>>> Smith&/nephew - mentionned in FT as potential target for stryker

...analysts from Needham said a bid from US peer Stryker looks “highly likely” even without the benefit of a tax inversion.
The scale and market share Stryker would gain by buying S&N makes a deal “too attractive to ignore”, said Needham. Offering a 20 per cent premium to S&N’s current price would boost Stryker’s cash earnings per share by 12 per cent in the first year even without tax savings, the broker forecast.