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Investing.com -- A new sector outlook from Barclays highlights major rating changes across European medical-technology stocks, led by an upgrade for GN Store Nord and a downgrade for Vimian, as analysts point to diverging fundamentals in hearing technology and animal-health services.
Barclays raised its rating on GN Store Nord to “overweight” from “equal weight,” citing improving fundamentals, stabilising conditions in its enterprise unit and continued gains in its hearing-aid business.
The brokerage says the company is benefiting from “continued share gains in hearing and the stabilisation of Costco headwinds,” with analysts also noting margin upside potential in both the gaming and FalCom segments.
The brokerage adds that new product launches expected across business lines could support growth into 2026. Barclays lifted its price target to DKK 140 from DKK 130.
Barclays also detailed its internal scenario work, outlining a path in which GN’s shares could “nearly double” in an upside case driven by margin expansion. Forecasts in the report show GN’s group EBITA margin rising from 11.9% in 2025 to 15.5% in 2028, supported by improvements across divisions.
In contrast, Barclays cut Vimian Group to “underweight” from “equal weight,” saying it expects near-term earnings pressure across several of the company’s units. The report cites a “structurally lower margin” in the Medtech division as the business mix shifts toward faster-growing but lower-margin dental subsidiaries, including iM3.
It adds that the Vet Services and Diagnostics segments are likely to face earnings pressure in 2026 as the company pursues what the analysts describe as “sensible organic investments” to expand both geographies and offerings. Barclays set a new price target of SEK 27, down from SEK 37.
The analysts say they now sit 3% below company-compiled consensus for Vimian’s adjusted EBITA in 2026 and 5% below for 2027, noting that these investment plans do not appear to be reflected in market estimates.
The brokerage shows Vimian’s adjusted EBITA forecast at €105 million in 2025 and €115 million in 2026, versus consensus expectations of €119 million and €128 million, respectively.
The broader sector analysis notes that MedTech shares have been weighed down by tariffs and reimbursement challenges through 2025, though support may emerge in 2026 from falling rates, easing inflation and lower valuations.
The brokerage emphasises a preference for “quality” names, noting that European quality MedTech stocks are trading at their lowest price-earnings multiples in a decade.