UBS downgrades Carl Zeiss Meditec on China risks, slower earnings recovery
BUZZ-UBS downgrades Carl Zeiss Meditec on China risks, slower earnings recovery ** UBS cuts Carl Zeiss Meditec AFXG.DE to "sell" from "neutral", citing risks to its roughly 25% China exposure from domestic competition and potential reimbursement reforms from 2027
** The broker expects a slower earnings recovery, estimating 2027 adjusted EBITA 20% below consensus and around 35% below the German medical technology firm's 2029 targets
** UBS says demographic headwinds and local competition in China, among other things, could pressure growth, pricing and market share
** Despite assuming significant cost savings, UBS expects these pressures to persist
** The stock is down 25% so far this year
** Out of 19 analysts that cover Carl Zeiss Meditec, two rate the stock "strong buy"/"buy", 15 "hold" and two "strong sell"/"sell" - LSEG data
(Reporting by Amir Orusov)
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