Citi reiterates these 2 medtech stocks as its top picks in the sector

Citi has reinforced its two key medtech stock picks, identifying Abbott Laboratories and Dexcom as top opportunities within the sector. The investment bank's analysis highlights the contrasting fortunes experienced by medtech companies as they navigate varying growth trajectories. Specifically, Citi's focus is on companies with near-term catalysts and improving operational momentum.

Abbott Laboratories remains a top pick for Citi, praised for its potential rebound driven by its continuous glucose monitoring (CGM) business. CGM sales surged by 7.5% in the first quarter, reaching $2 billion, and management anticipates a return to double-digit growth in the second quarter. Abbott has also raised its full-year adjusted earnings per share guidance and received a Buy rating from Rothschild Redburn, citing strength in the Medical Devices business.

Dexcom is Citi's second top pick in the sector, with its stock up about 35% year to date after falling 14.7% in 2025. The company's second-quarter revenue rose 13%, with 12% organic growth. International revenue increased by 19%, and the product transition has lifted gross margin by approximately 400 basis points. Citi notes Dexcom's visible operating momentum and views it as a share-gain story compared to Abbott's slower CGM growth.

While focusing on these two stocks, Citi also identifies upside catalysts for Edwards, Sight Sciences, and Zimmer Biomet, while considering Boston Scientific as a stock with downside risk. Boston Scientific, affected by a cyberattack and facing competitive pressure in key franchises, has already cut its guidance and expects to miss its targets. Citi highlights different triggers that could potentially impact each company, such as trial readouts, product launches, or expected recoveries in the following year.