EU and US could reach trade deal this weekend - Reuters
On Friday, analysts at Kepler Cheuvreux raised their rating on Demant A/S stock from Hold to Buy. The upgrade comes with an increased price target of DKK315, up from DKK240. This change reflects the analysts’ positive outlook on the company’s future performance.
The analysts highlighted several factors contributing to their improved outlook for Demant. They noted the company’s potential launch of a new hearing aid in the summer of 2025, which is expected to drive growth in the fourth quarter and into 2026. This anticipated product introduction is seen as a key driver for accelerating the company’s growth trajectory.
In addition to the product launch, the analysts pointed to a shift in Demant’s managed care strategy and a more flexible approach to pricing with large accounts. These strategic adjustments are viewed as evidence of management’s pragmatic approach and ability to address past challenges.
Despite recent estimate cuts, the analysts believe that the positive factors will outweigh the negative ones for Demant in 2025. They also noted that Demant’s stock trades at a mid-teens discount to its historical average price-to-earnings ratio, suggesting potential for re-rating as growth accelerates.
Kepler Cheuvreux’s revised outlook reflects confidence in Demant’s ability to capitalize on these opportunities, leading to the upgrade and increased price target.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.