JPM cuts Straumann to 'neutral' on slowing demand

Envista Holdings

05/12/2023 11:55

** J.P.Morgan cuts Swiss dental equipment maker Straumann
 STMN.S  to "neutral" from "overweight" citing slowing demand
and a recent recovery in the share price
    ** JPM points to uncertain growth prospects in the dental
industry after Straumann's Q3 growth in its core developed
markets was slowest in 8-9 years
    ** Rivals have been cautious, with Envista  NVST.N  cutting
guidance at Q3 results and Henry Schein  HSIC.O  guiding for
2024 growth at the low end of its earlier assumption, the
brokerage notes
    ** Consensus expectations have limited upside in the near
term, as Straumann's premium valuation already reflects its
superior growth outlook, JPM adds
    ** A 20% share price recovery over the past year leave it
with a balanced risk-reward and limited growth potential, the
broker says
    ** Of 18 analysts covering Straumann, eight rate it "buy",
seven "hold" and three "sell" - LSEG 

 (Reporting by Louis van Boxel-Woolf)
 ((Louis.vanBoxel-Woolf@thomsonreuters.com))