UBS ups Sonova to 'buy', new hearing aid market leader with valuation upside

Demant A/S

22/07/2026 12:45

** UBS upgrades Swiss hearing aid maker Sonova SOON.S to "buy" from "neutral" and rises its PT by more than 17% to CHF 242 ($297.85), seeing the stock as a top pick in the segment
** The broker sees Sonova as the sector leader in AI-enabled hearing aids and expects software upgrades to support market growth, in a segment still relatively insulated from key medtech risks
** UBS now prefers Sonova over Danish peer Demant DEMANT.CO, citing a more attractive valuation and an underappreciated replacement cycle for its hearing-aid platform  
** "We believe three years of EPS downgrades have now ended, and for the first time, our forecasts are ahead of consensus earnings estimates - 4% on core EBIT this year, and 6% beyond," UBS says 
** The stock offers around 20% upside and a compelling entry point ahead of multiple H2 catalysts, including a potential new platform launch and first-half results in November, broker adds
** The stock has gained 2.9% YTD


($1 = 0.8125 Swiss francs)

 (Reporting by Isabela Kruczynska)
 ((Isabela.Kruczynska@thomsonreuters.com))