** 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 |
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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