Growth in focus as macro questions linger on EU Consumer MedTech - Bernstein

Cochlear

15/12/2023 12:03

** Bernstein says the key question regarding European
consumer medical technologies sector in 2024 is the trajectory
of underlying market growth across many of the sub-markets
    ** The broker sees concerns on dental and hearing aid stocks
as overdone relative to the actual potential impact from macro
weakness to the company's underlying businesses
    ** Overall, Bernstein continues to see more opportunity than
risk from China in consumer medtech given primarily private
markets and still very low penetration
    ** Its top pick is Italian hearing aid group Amplifon
 AMPF.MI  ("outperform") with its stable long-term growth
trajectory
    ** It maintains "outperform" on Straumann  STMN.S , citing
the Swiss dental equipment maker's favorable competitive
position, but notes sentiment around macro will likely continue
to overshadow the stock for the next 3-6 months
    ** Among hearing aid manufacturers, the brokerage still
prefers Demant  DEMANT.CO  ("outperform") to Sonova  SOON.S 
("underperform"), expecting retail business of the former to be
supported by the recovery in France and restructuring in the
U.S., while competitive environment is likely to make winning
back market share tougher for the latter
    ** Bernstein keeps "market-perform" on Danish hearing aid
and audio solutions maker GN  GN.CO , citing doubts around
growth in the group's Audio segment in 2024 and pressure from
greater competition
    ** It sees limited catalysts for further upside for Cochlear
 COH.AX , hence repeats "market-perform" on the stock
    

 (Reporting by Marta Frąckowiak)
 ((marta.frackowiak@thomsonreuters.com))