Smith & Nephew downgraded to Sector Perform from Outperform at RBC Capital

RBC Capital downgraded Smith & Nephew to Sector Perform from Outperform with a price target of 1,350 GBp, down from 1,700 GBp. The firm sees “material risk” of estimate downgrades to the company’s 2026 guidance through the year. RBC’s recovery thesis is largely played out and the risk of Smith & Nephew’s guidance downgrades “now outweighs limited near-term catalysts,” the analyst tells investors in a research note.