Bank of America Securities analyst Julien Ouaddour maintained 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 potential for growth and market performance. The company has shown strong momentum in its US Hips segment, which has outperformed the market, driven by the introduction of the CATALYSTEM hip platform. Although the US Knees segment lags, management anticipates alignment with market growth by year-end, with further upside expected in 2027 following new product introductions.
Additionally, Smith & Nephew’s strategic initiatives, such as an improved commercial strategy and efficient supply chain, are expected to enhance its market position. The company’s organic growth is projected to accelerate, supported by potential margin expansion from cost savings and inventory management. With upcoming catalysts, including a significant share buyback and new mid-term targets, the risk/reward profile appears favorable, reinforcing the Buy rating.
Ouaddour covers the Healthcare sector, focusing on stocks such as Fresenius Medical Care AG & Co. KGaA, Smith & Nephew, and Alcon. According to TipRanks, Ouaddour has an average return of 21.8% and a 75.00% success rate on recommended stocks.
In another report released on September 15, Goldman Sachs also maintained a Buy rating on the stock with a p1,700.00 price target.