BUZZ-'In an uncertain world, opportunities abound' - Citi on European health cos

Reuters
05 Jun
BUZZ-'In an uncertain world, opportunities abound' - Citi on European health cos

** Citi is more constructive on the opportunities in European Healthcare Services and MedTech, seeing fewer near-term risks to consensus in an uncertain market

** The broker says Q1 earnings largely showed resilient end-markets as well as a stable cost/operating environment, with guidance ranges considering worst-case tariff scenarios

** The sector is also trading at/or below historical averages - brokerage

** Brokerage says it considers Alcon ALCC.S its top pick, and also prefers Diagnostyka DIAP.WA, EssilorLuxottica ESLX.PA, Oxford Nanopore Technologies ONT.L, Schott Pharma 1SXP.DE, and Siemens Healthineers SHLG.DE (all "buy"-rated)

** Separately, it prefers some companies such as Demant DEMANT.CO, Fresenius FREG.DE and Smith & Nephew SN.L, which have a disconnect between existing valuation and fundamental earnings

** Broker upgrades Demant to "buy" from "neutral"

** The brokerage keeps "sell" rating on Elekta EKTAb.ST citing structural share losses, and on Sonova SOON.S, Straumann STMN.S, where it still sees low-to-mid single-digit percentage downside to consensus

COMPANY

NEW RATING

OLD RATING

Alcon

buy

buy

Amplifon AMPF.MI

neutral

neutral

Coloplast COLOb.CO

neutral

neutral

ConvaTec CTEC.L

neutral

neutral

Demant

buy (upgrade)

neutral

Diagnostyka

buy

buy

Elekta

sell

sell

EssilorLuxottica

buy

buy

Fresenius Medical Care FMEG.DE

neutral

neutral

Fresenius

buy

buy

GN Store Nord

buy

buy

Koninklijke Philips PHG.AS

neutral

neutral

Oxford Nanopore Technologies

buy

buy

Schott Pharma

buy

buy

Siemens Healthineers

buy

buy

Smith & Nephew

buy

buy

Sonova

sell

sell

Straumann

sell

sell

Synsam

buy

buy

(Reporting by Marta Frąckowiak)

((marta.frackowiak@thomsonreuters.com))

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