Morgan Stanley sees selective medtech opportunities on growth recovery
BUZZ-Morgan Stanley sees selective medtech opportunities on growth recovery ** Morgan Stanley says improving growth and weaker YTD medtech performance open selective opportunities; but is cautious on tariff and cost pressures
** "Demand recovery supports a sector re-rating, offset by cost pressure" - MS
** The brokerage turns less negative on hearing aids as it notes growth in the market, "robust" pricing power on new innovation and relatively lower exposure to macroeconomic challenges; upgrades Demant DEMANT.CO and Sonova SOON.S
** Adds that Demant is likely to benefit most from better-than-expected earnings and a higher valuation driven by three upcoming catalysts
** Prefers Demant and Fresenius FREG.DE, noting their stronger free cash flow resilience and better earnings momentum
** Also sees a near-term re-rating opportunity in Qiagen QIA.DE
** But stays cautious on Coloplast COLOb.CO on earnings risk into 2026/27 and sees possible underperformance in BioMerieux BIOX.PA if weaker respiratory testing volumes hurt its molecular business
COMPANY | NEW RATING | OLD RATING | NEW PT | OLD PT |
|---|---|---|---|---|
BioMerieux | underweight | equal-weight | €64 | €100 |
Demant | overweight | equal-weight | DKK 290 | DKK 210 |
Qiagen | overweight | equal-weight | €37 | €34 |
Sonova | equal-weight | underweight | CHF 205 | CHF 172 |
(Reporting by Vera Dvorakova)
((vera.dvorakova@thomsonreuters.com))