Carl Zeiss Meditec: Slowing Growth, Limited Upside and Leadership Uncertainty Justify Hold Rating

Carl Zeiss Meditec, the Healthcare sector company, was revisited by a Wall Street analyst today. Analyst Richard Felton from Goldman Sachs downgraded the rating on the stock to a Hold and gave it a €42.00 price target.

Richard Felton has given his Hold rating due to a combination of factors related to Carl Zeiss Meditec’s slowing growth and more limited upside. He has reduced his adjusted EBITA forecasts by around 2% for FY26–28 and now assumes only modest earnings expansion, leaving his projections slightly below market consensus. Reflecting this softer outlook, he has cut his valuation multiple from 22x to 18x and lowered the 12‑month price target from €54 to €42, which implies only about 6% potential upside from current levels. He also highlights that a new permanent CEO has not yet been appointed, adding an element of leadership uncertainty to the investment case.

Richard expects a weak start to the new fiscal year, with flat organic revenue growth in Q1 and sales materially below consensus, driven by prior pull‑forward of orders, regulatory-related product registration issues in China, and normal seasonal weakness. Although the share price has already de-rated significantly from peak valuation levels, he judges that this rerating largely mirrors the company’s decelerating revenue and earnings trajectory compared with earlier years. In his view, the current price appropriately discounts Carl Zeiss Meditec’s reduced organic growth and returns profile, as well as more competitive end markets. As a result, he sees the balance of risks and rewards as fairly even at this stage, supporting a Neutral/Hold stance rather than a more constructive recommendation.

In another report released on January 13, Kepler Capital also maintained a Hold rating on the stock with a €46.00 price target.