Robert Hopkins
Bank of America Merrill Lynch
First-place appearances: 1

Total appearances: 10

Team debut: 2004

In his tenth straight year on the roster, Bank of America Merrill Lynch’s Robert Hopkins claims a seventh consecutive second-place spot. Core medical technology markets have stabilized, and managements continue to cut costs and return capital to shareholders, he says. “The relative-risk profile of med tech earnings has been lowered as a result, and multiples have climbed to a premium to the S&P 500 for the first time in two years,” the researcher adds. “Interestingly, there has been no change to the outlook for earnings but rather a reconsideration of the relative-risk profile of those earnings compared with other sectors’.” Hopkins is bullish on device makers Baxter International of Deerfield, Illinois, and C.R. Bard of Murray Hill, New Jersey. He views Bard as “an underappreciated accelerating-growth story,” advising that consensus earnings estimates may be too low. Baxter, a long-standing favorite, he dubs a “multiple-expansion story” whose price-earnings ratio could move higher. “We believe concerns around new hemophilia competitors are overblown,” he explains. “As competitors launch and concerns prove to be misplaced, we expect Baxter’s discounted multiple to expand.” According to one supporter, “Bob looks at products from the physician’s perspective and understands the marketing challenges unique to the sector. His experience following the sector helps avoid mistakes in stock valuations.” — Leslie Kramer