Carl Zeiss Meditec drops after JPM starts at 'underweight'

Carl Zeiss Meditec AG

05/12/2023 08:35

** Shares in Carl Zeiss Meditec  AFXG.DE  drop around 5%
after J.P.Morgan started the German medical technology firm with
an "underweight" rating, citing its slowing earning profile and
"unattractive" valuation
    ** The broker sees a slowing top-line and increasing cost
base as the main challenge to the firm's margins, as the company
faces volume and pricing headwinds in China (25% of group
sales), while R&D has been growing ahead of sales
    ** It also notes that the firm has limited exposure to the
US and expects market penetration to be slow as the company
launched its first monofocal (IOL) in the US only in 2023
        ** JPM adds that despite that shares are down 30% YTD,
they still trade at a 35% premium to the sector
  
    ** Out of 17 analysts that cover Carl Zeiss Meditec, seven
rate the stock "strong buy" or "buy,"​ seven rate it "hold" and
three​ rate the stock "strong sell" or "sell" 

 (Reporting by Eva Orsolya Papp)
 ((Evaorsolya.Papp@thomsonreuters.com))