BofA Lifts Price Objective, Estimates for Sonova on 'Stronger' Hearing Aid Market

MT Newswires · 2d ago
02:21 AM EDT, 09/18/2026 (MT Newswires) -- BofA Global Research raises its price objective and forecasts for Sonova (SOON.SW), saying the "stronger" hearing aid market supports the bull case for the company. "The hearing-aid market has tracked the upper end of management's 2-4% expectation [year to date], creating a more supportive backdrop for Sonova. Faster market growth, continued share gains and a favourable geographic mix should support stronger revenue growth and even faster profit growth," according to a Thursday note. Against this backdrop, analysts project an "attractive" 11% EBIT compound annual growth rate over fiscal 2027 to 2028, with room for a valuation re-rating if market growth or share gains accelerate. Expecting 7.2% constant-currency sales growth for 2027, the research firm's forecast sits 80 basis points ahead of consensus, projecting a first-half weighted profile led by hearing instruments, unlike the broader market. "The key drivers are 1) easier comps, 2) Virto contributing >5ppts in 1H, before becoming neutral in 2H, and 3) VA adding >2ppts in 1H before potentially turning negative. Costco should support both halves, while the contribution from EON-led share gains remains the main 2H swing factor. Earnings should follow the stronger sales trajectory, while more favourable FX provides an additional potential upside risk to FY27 estimates," the note said. Accordingly, BofA increased the buy-rated stock's price objective to 280 francs from 225 francs. Analysts also lifted their EPS estimates for 2027 through 2029.