Biden's tax proposals could weigh on these medical tech stocks, Wells Fargo says

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Dr. Kalkidan Biahu, Dr. Mike Kim, and Dr. John Carroll perform a minimally invasive surgery at one of the University of Colorado Hospital's catheter labs on Thursday, July 17, 2014 in Aurora, CO.
Kent Nishimura | Denver Post | Getty Images

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.

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