EU and US could reach trade deal this weekend - Reuters
On Thursday, Citi analysts upgraded Demant A/S (DEMANT:DC) (OTC:WILYY) stock from Neutral to Buy, citing expectations for significant growth in wholesale organic sales growth (OSG) through the rest of 2025 and into 2026. The analysts raised the price target for Demant stock to DKK335 from DKK315.
The upgrade comes after Demant shares underperformed compared to the European MedTech sector and its peer Sonova over the past 12 months. The underperformance was attributed to disappointing wholesale growth in a competitive market and the loss of managed care contracts in April 2024.
Citi analysts expect Demant’s wholesale OSG to improve, driven by easier comparisons, the return of some managed care contracts, and the potential launch of a new platform. Recent trademark filings suggest the new platform could be available as early as August 2025, or by early 2026 at the latest.
Despite the current challenges, Demant trades at an eight-year high discount to Sonova, even though both companies have comparable top- and bottom-line growth in the short- and mid-term. Based on these factors, Citi analysts see a potential 32% upside for Demant shares.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.