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Research Alert: CFRA Maintains Hold Opinion On Adss Of Smith & Nephew

05/12/2021 02:02

06:00 AM EDT, 05/12/2021 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We keep our Hold opinion on ADSs of Smith & Nephew (SNN) and adjust our target price by $5 to $43, which implies 23.9x our 2021 earnings per ADS. This is largely in line with its 3-year mean. Q1 revenue grew by 6.2% Y/Y on underlying basis (reported: +11.5% on currency tailwind and acquisitions) driven by the improvement in elective surgeries especially in the U.S. (+7.1%) and emerging markets (+21.8%) on the back of the easing of Covid-19 restrictions. Underlying revenue in other established markets however was 1.8% lower Y/Y as growth in most European markets slowed in March as infection rates rose. We forecast revenue to grow by 16% and trading margin to improve to 19% in 2021 on the easier comparison base and as markets gradually recover, partly impacted by higher R&D investment. We keep our earnings per ADS estimates of $1.80 for 2021 and $2.10 for 2022. The still high number of Covid-19 cases remains a key risk in our view.