Goldman Sachs analyst Richard Felton upgraded the rating on Carl Zeiss Meditec (0DHC – Research Report) to a Buy today, setting a price target of €74.00.
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Richard Felton has given his Buy rating due to a combination of factors related to Carl Zeiss Meditec’s performance and market outlook. One of the primary reasons is the perceived over-pessimism in the consensus forecasts for the company’s China Refractive segment. Felton believes that the market has been too negative, predicting a significant decline, whereas he sees signs of stabilization in this area.
Furthermore, several developments support a more optimistic view, such as the approval of Visumax 800 in China, which is expected to boost equipment revenue. Additionally, recent due diligence indicates a stabilization trend in the Chinese market. Consequently, Felton has modestly increased his EBITA estimates and raised the target price for Carl Zeiss Meditec, suggesting a 27% upside potential, leading to the upgrade from Neutral to Buy.