Sonova hits over 2-year high after reports it will restart supplies to Costco
28/10/2024 12:02
** Shares in Swiss hearing aid maker Sonova SOON.S jump
5.2%, trading at their highest levels in over two years, with
J.P.Morgan citing reports that it will be back as a supplier for
Costco COST.O
** Reports on Friday said Sonova is expected to replace
Rexton as a supplier for Costco, after its previous agreement
with the retailer was discontinued in 2022, JPM says
** Sonova will offer prescription hearing aid Sennheiser
Sonite R in 107 locations in the U.S., with a gradual ramp up
expected to follow, a Reuters source said on Monday
** The source added it is logical for Costco to work in this
way, by testing the product with a number of warehouses before
rolling it out further
** Spokespersons for Costco and Sennheiser Consumer
business, a Sonova division, could not be immediately reached
for a comment
** JPM says this is a positive surprise, as Sonova and other
hearing aid management teams have previously downplayed the
possibility of a near-term return to Costco
** The stock tops the Swiss blue chip index .SSMI and the
pan-European STOXX 600 .STOXX
(Reporting by Elizaveta Gladun)
((elizaveta.gladun@thomsonreuters.com))