01:52 PM EDT, 07/15/2024 (MT Newswires) -- Most medical technology companies appear well positioned as they prepare to report their Q2 financial results, analysts at Morgan Stanley said Monday, citing recent discussions with the companies and channel checks with customers.

Overall, industry fundamentals are solid, with utilization rates and volumes running well across most end-markets for medtech companies, Morgan Stanley analysts said in a new research note.

Abbott Laboratories ( ABT ) likely will set a positive tone when the device and drug maker reports its Q2 results Thursday, Morgan Stanley said, forecasting "better than anticipated growth" for both its electrophysiology and cardiac remote monitoring businesses.

Morgan Stanley raised its stock rating for Alcon ( ALC ) to equal weight from underweight and increased the price target to $85 from $65.

The higher price target reflects a slight growth-adjusted premium to the broader US medtech landscape, which "makes sense given (its) strong market position" coupled with its dual listing.

In the opposite direction, Morgan Stanley downgraded Baxter International ( BAX ) and Staar Surgical ( STAA ) to underweight from equal weight and lowered the price targets to $30 from a prior target of $39 for Baxter and $37 from $50 for Staar, in part citing upside risks and margin challenges posed by their recent acquisitions.

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