Bank of America Securities analyst Julien Ouaddour reiterated a Buy rating on Smith & Nephew today and set a price target of p1,500.00.
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Julien Ouaddour has given his Buy rating due to a combination of factors that highlight Smith & Nephew’s strong position in the EU MedTech sector. The company has demonstrated impressive sales growth in the third quarter, with a notable increase of 7.6%, and has managed to navigate challenges such as tariff resilience and foreign exchange benefits. Additionally, the completion of destocking in the orthopedic segment and the annualization of volume-based procurement in joint repair further bolster the company’s outlook.
Moreover, Smith & Nephew’s strategic initiatives, including a $500 million share buyback in the second half of the year and upcoming mid-term targets to be announced in December, provide a positive risk/reward scenario. The expectation of further margin expansion by fiscal year 2026, supported by cost savings and a recovery in the US orthopedic market, enhances the company’s valuation prospects. With shares trading at less than 15 times the fiscal year 2026 price-to-earnings ratio, there is potential for the valuation discount to narrow compared to its EU MedTech peers, justifying the Buy rating.
In another report released on August 11, Citi also maintained a Buy rating on the stock with a £14.50 price target.
Based on the recent corporate insider activity of 73 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of SN in relation to earlier this year.