Analyst Julien Ouaddour of Bank of America Securities maintained a Buy rating on Smith & Nephew (SN – Research Report), with a price target of p1,290.00.
Julien Ouaddour has given his Buy rating due to a combination of factors that highlight Smith & Nephew’s strong performance and promising outlook. The company reported better-than-expected results for FY24, with sales and profits exceeding initial guidance. This growth was driven by robust performance in established markets, particularly in the US, despite challenges in China. The company’s strong finish in Q4, aided by extra trading days, further underscores its solid business momentum.
Looking ahead, Smith & Nephew has confirmed its FY25 guidance, projecting a 5% organic growth and an EBIT margin of 19-20%. This outlook is supported by anticipated cost savings and operating leverage, which are expected to offset challenges such as cost inflation and the ongoing softness in China. The attractive valuation, combined with a positive risk/reward profile, reinforces the Buy rating, as these factors are likely to bolster investor confidence and set a strong foundation for future growth.
Based on the recent corporate insider activity of 68 insiders, corporate insider sentiment is neutral on the stock.