Smith & Nephew Snats (SNN – Research Report), the Healthcare sector company, was revisited by a Wall Street analyst yesterday. Analyst Caitlin Cronin from Canaccord Genuity maintained a Hold rating on the stock and has a $28.00 price target.
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Caitlin Cronin has given her Hold rating due to a combination of factors impacting Smith & Nephew Snats. The company delivered a solid first quarter, slightly exceeding consensus expectations and maintaining its guidance despite facing macroeconomic challenges. While there was growth in various portfolio segments, the company faced headwinds in China, which it believes have peaked, and experienced the anticipated impact of one fewer selling day. Additionally, Smith & Nephew’s performance in the US orthopedic market showed promise, particularly in knees and hips, but the company still needs to demonstrate its ability to return to market growth by the end of the year.
Despite these challenges, Smith & Nephew maintained its fiscal year 2025 guidance for revenue growth and trading margin, with expectations of stronger performance in the second half. The company is also addressing potential US tariff impacts, which it believes can be absorbed within its current guidance. While there are encouraging signs, such as the strengthening of its innovation engine and plans for CORI, Cronin suggests waiting for further macroeconomic and operational improvements before reconsidering the rating. Therefore, the Hold rating is maintained as the company navigates these ongoing challenges.