Sonova upgraded to Buy from Hold at HSBC

HSBC upgraded Sonova (SONVY) to Buy from Hold with a price target of CHF 290, down from CHF 310. The firm adjusted ratings in medical technology and life sciences are quantifying the risk/reward using stagflation, weak macro environment, and recovery scenario analyses. The market is debating whether the recent multiples correction is an opportunity to buy, or if it is the start of a potential recession, the analyst tells investors in a research note. HSBC’s analysis of historical sector multiples reveals that the multiples compression might have an additional 20%-25% downside in a stagflation scenario. “We are far from the point where one can argue that these stocks are pricing in a recession,” contends HSBC.