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Investing.com -- Europe’s medical-technology sector enters 2026 after a year marked by tariff pressure, reimbursement uncertainty and muted share-price performance.
But Barclays says the landscape is shifting as inflation cools, rates fall and valuations improve, placing renewed attention on four companies it lists as its preferred "overweight" names: EssilorLuxottica, Fresenius SE, Straumann and Siemens Healthineers.
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These stocks, highlighted as top ideas in the bank’s 2026 outlook, are positioned around innovation-driven growth and what the analysts describe as “quality for sale” as high-quality European MedTech valuations sit near 10-year lows.
EssilorLuxottica
Barclays identifies EssilorLuxottica as a preferred "overweight," describing the group as a quality compounder despite its premium valuation. The bank says the company’s wearables business is viewed as a disruptive growth driver and is expected to accelerate the top line.
EssilorLuxottica stands out in its innovation-led growth framework, where the analysts cite its role in advancing AI-integrated products through partnerships such as its tie-ups in smart eyewear.
The report notes that while the stock has already re-rated, Barclays continues to include it among its most preferred names, pointing to consistent execution and durable earnings strength.
Fresenius SE
Fresenius SE is highlighted for what Barclays calls a “new leg of growth,” underpinned by its biosimilars business.
The analysts say regulatory developments in the United States could shorten time-to-market for biosimilars, adding a potential positive for the group in 2026.
The report also notes stronger German hospital reimbursement dynamics, citing a 3.25% surcharge and 2.98% DRG inflator, which the bank views as favorable compared with prior years.
Barclays places Fresenius SE among its top four overweights and sees upside risk to 2026 earnings, indicating estimates sit 6% above consensus.
Straumann
Straumann is listed as both a quality MedTech name and a preferred "overweight," with Barclays pointing to high-single-digit to double-digit growth prospects supported by innovation.
The analysts highlight the company’s iExcel system, describing it as a differentiated product that is helping Straumann gain market share, with the technology already representing 20% of premium implant volumes according to its dental survey.
With anticipated US and EU rate cuts and early signals of improving dental demand, Barclays says Straumann is its preferred play for a recovery in consumer-driven MedTech.
The bank cites the stock’s valuation at 27x FY1 earnings versus a 10-year average of 36x as a key part of its “quality for sale” theme.
Siemens Healthineers
Siemens Healthineers is cited as offering “one of the most compelling idiosyncratic growth stories” in European MedTech. The analysts point to the company’s photon-counting CT technology, which they say is “multiple years ahead of the competition,” as well as its position as the only molecular-imaging business under coverage.
While the Siemens AG capital-markets day did not provide the clearing event Barclays expected regarding a potential spin-off, the analysts say they see 15% EPS growth in 2027 as tariff headwinds fade.
The report calls the stock undervalued at 17x P/E and 12x EV/EBITDA on FY26 estimates, below the broader MedTech sector.
Siemens Healthineers remains one of Barclays’ top four overweights heading into 2026.
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