Bernstein reinstates Straumann stock with Outperform rating

Published 14/03/2025, 12:34
Bernstein reinstates Straumann stock with Outperform rating

On Friday, Bernstein SocGen Group has resumed its coverage on Straumann Holding AG (SIX:STMN:SW) (OTC: SAUHF), issuing an Outperform rating and setting a price target of CHF160.00. The firm’s analysis highlights Straumann’s consistent history of double-digit revenue growth, strategic acquisitions that enhance earnings, and a strong record of execution and innovation.

Straumann, recognized as a leader in the dental implant market and a formidable player in clear aligners and digital dentistry equipment, is well-positioned to capitalize on the shift toward digital solutions in dental services. Bernstein points to the company’s potential for continued market share expansion, driven by its commitment to innovation, as evidenced by the recent launch of iExcel in implants and Straumann AXS in digital.

The analyst notes that the dental end-markets where Straumann operates are expected to grow at a mid single-digit to double-digit rate. This growth is supported by opportunities for increased market penetration, particularly as the industry embraces digital technologies. The firm’s analysis suggests that concerns about the current composition of Straumann’s growth are overstated, predicting that North America will see an acceleration to a 7% increase in 2025, while a robust performance in China could lead to a 14% growth in the Asia-Pacific region for the same year.

The forecasted acceleration of growth in North America, coupled with steady growth in other regions, is anticipated to alleviate concerns about Straumann’s long-term growth prospects. Bernstein anticipates that the company’s earnings multiple, which currently stands at 31.5 times the estimated 2025 earnings per share and is below the 10-year historical average of 41 times the forward-year earnings, has room to adjust upwards as the market gains confidence in the company’s growth trajectory.

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