Sector Outlook: On the one hand, it can be tempting to look at 2022 as a repeat of 2021 with the combination of lingering Delta challenges and Omicron taking the place of last year’s holiday surge. We expect to see some softness into the initial months of 2022 because of this, but on the other hand, we think the outlook for MedTech is set to meaningfully improve, given (1) the impact of Omicron and future COVID-19 variants should be offset by (a) better preparedness from the healthcare system, and (b) deeper penetration of vaccinations and growing adoption of novel antivirals; (2) relatively easy comps at least into 3Q22, although we think it's prudent to stay more conservative on procedure recapture for now; and (3) the sector trades at a discount to the S&P vs. a historical healthy premium; we believe COVID’s impact on procedure volumes should normalize during 2020, and view this as a buying opportunity. This isn’t the first time we’ve called for a recovery trade, but our call through 2021 was actually correct ahead of Omicron as MedTech outperformed the S&P in 1Q21-3Q21 to trade at a premium on NTM P/E.