Caitlin Roberts, an analyst from Canaccord Genuity, maintained the Hold rating on Smith & Nephew Snats. The associated price target is $34.00.
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Caitlin Roberts has given her Hold rating due to a combination of factors surrounding Smith & Nephew Snats’s strategic initiatives and market positioning. The company has introduced a new RISE plan aiming for a 6-7% organic revenue growth CAGR by 2025-2028, which is ambitious compared to the current and next year’s growth expectations. While the plan is promising, its success heavily relies on effective execution, particularly in enhancing its commercial engine and expanding its product portfolio.
Despite some progress with its previous 12-point plan, Smith & Nephew Snats continues to face challenges, especially in the US knee market where it lags behind competitors. Additionally, the company anticipates ongoing headwinds in China and potential impacts from changes in wound reimbursement. Although there are opportunities in areas like sports medicine and the potential growth of its CORI robotic system in ambulatory surgery centers, the overall market dynamics and execution risks contribute to the Hold rating. Roberts plans to reassess the situation and update the model as the company progresses with its strategic initiatives.