Morgan Stanley upgrades hearing aid maker Demant, cuts peer Sonova
21/08/2024 10:44
** Morgan Stanley upgrades hearing aid maker Demant
DEMANT.CO to "overweight" from "underweight", while
downgrading its peer Sonova SOON.S to "underweight" from
"equal-weight"
** Sees an attractive entry point for Demant, citing
de-risked estimates after the profit warning and guidance cut in
July, with valuation at multi-year lows
** The broker expects Demant's growth to accelerate into
2025; scope to improve margins after Demant announced planned
sale of the loss-making communications business
** Flags Sonova's EV/EBITA valuation compared to Demant and
hearing aid peers has hit an all time high
** Mean target price for Demant at DKK 306.38, Sonova at CHF
279.81 as per LSEG
(Reporting by Marta Frąckowiak, Anastasiia Kozlova and Amir
Orusov)
((marta.frackowiak@thomsonreuters.com;
Anastasiia.Kozlova@thomsonreuters.com;
Amir.Orusov@thomsonreuters.com))