Demant’s Strategic Growth and Market Positioning Justify Buy Rating with 21% Upside Potential

Analyst Robert Davies of Morgan Stanley maintained a Buy rating on Demant (WILLF – Research Report), reducing the price target to DKK310.00.

Robert Davies has given his Buy rating due to a combination of factors including Demant’s consistent growth record and its strategic positioning in the market. The company has demonstrated an average organic growth of 6% from 2010 to 2024, and while the growth forecast for 2025 is a moderate 3%, it is expected to accelerate to 5.7% in 2026 as market conditions normalize.
Additionally, Demant’s stable margins, which have averaged 18.8% over the last decade, are projected to improve from 18.6% in 2025 to 19.5% in 2026. The company’s significant exposure to the French market, where hearing aid volumes have surged, is also a positive factor. Despite some risks related to tariffs, the valuation of Demant remains attractive, with a potential 21% upside to the price target and a favorable risk-reward ratio, supporting the Buy recommendation.

In another report released today, UBS also maintained a Buy rating on the stock with a DKK295.00 price target.