The corporate tax increases included in President Joe Biden's infrastructure plan could weigh on a handful of medical technology stocks and pose a headwind to the industry's profits in the coming years, according to Wells Fargo.
Though analyst Larry Biegelsen cautioned that lawmakers may make significant changes to the plan over time, he nonetheless warned that the legislation could reduce the 2022 per-share earnings of the large-cap "medtech" stocks he covers by somewhere between 3.2% and 8.1%.
"It's important to note that President Biden has not released a lot of details on his tax plan, therefore, estimating the potential impact is challenging," Biegelsen wrote in a note published Wednesday.