United Homes Group stock plunges after Nikki Haley, directors resign
Investing.com - Bernstein SocGen Group downgraded Smith & Nephew PLC. (LSE:SN) (NYSE:SNN) from Outperform to Market Perform with a price target of GBP14.00.
The downgrade follows a strong 33% rally in Smith & Nephew’s stock year-to-date in 2025, driven by solid revenue growth and improved profitability in the company’s Orthopedic division.
Bernstein noted that consensus earnings per share estimates for 2026 are now 10% higher than at the start of the year and slightly above the firm’s own expectations.
The medical technology company’s valuation has recently recovered, with the stock now trading at a forward price-to-earnings ratio of 18x after spending much of the past three years in the 15x to 18x range.
Bernstein indicated that while Smith & Nephew historically traded at a 1-year forward P/E of 17x to 22x, a lower multiple compared to pre-pandemic averages is warranted given the deterioration in the outlook for China in recent years.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.