'The consumer medical technologies', Bernstein starts hearing and dental products makers

Cochlear

12/05/2023 12:36

** Bernstein says that given limited reimbursement and
easily deferred procedures, hearing and dental products are more
consumer-like when compared to the rest of medical technologies
space
    ** "Limited insurance and easily deferred procedures lead
treatments to compete with discretionary purchases," it notes,
estimating that low penetration leaves a theoretical over $30
bln untapped opportunity in hearing and over $100 bln in
specialty dental
    ** Structurally, it prefers the dental markets: "it's easier
to move penetration when you're selling a status symbol than a
reminder you're getting old"
    ** It adds it believes dental penetration is at an
inflection point, forecasts +7% dental implant and +20-25% clear
aligner market growth from 2022-27
    ** The broker starts dental implants leader Straumann
 STMN.S  with "outperform", seeing it as beneficiary of these
positive structural trends
    ** Within hearing, it starts Amplifon  AMPF.MI  at
"outperform" as it is best positioned to win the consumer
"brand" segment
    ** It also rates "outperform" on Demant  DEMANT.CO  as it is
well positioned in the current cycle, while "underperform" on
Sonova  SOON.S  as it faces more challenging outlook 
    ** The broker is "market-perform" on GN Store Nord  GN.CO 
and Cochlear  COH.AX 

 (Reporting by Paolo Laudani and Romolo Tosiani)
 ((Paolo.laudani@thomsonreuters.com;
romolo.tosiani@thomsonreuters.com))