Barclays upgrades Demant stock rating on achievable guidance

Published 20/06/2025, 08:12
Barclays upgrades Demant stock rating on achievable guidance

Investing.com - Barclays (LON:BARC) upgraded Demant A/S (DEMANT:DC) from Underweight to Equalweight on Friday, while raising its price target to DKK285.00 from DKK220.00.

The research firm cited more achievable guidance following Demant’s Q1 reset, which should help stabilize consensus EBIT downgrades. Barclays noted that Demant has experienced 18% year-to-date EBIT downgrades compared to competitor Sonova’s 4%.

Barclays’ survey of audiologists revealed growing optimism around Demant’s share dynamics and re-entry into managed care. The firm also highlighted that Demant is positioned to benefit from a recovery in the French market.

The research firm increased its EBIT estimates for Demant by 1-2%, placing its projections at the midpoint of this year’s guidance range and in line with consensus expectations. These adjusted numbers reflect the rebased expectations established during Demant’s Q1 report.

Despite the upgrade, Barclays maintained a cautious stance, stating it remains "on the sidelines given challenging market conditions" and continues to prefer retail over wholesale in the sector. Demant is now Barclays’ preferred name in the wholesale segment.

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