This report is not a personal recommendation and does not take into account your personal circumstances or appetite for risk.
Trade Parameters
Technical Observations – For
Technical Observations – Against
Defensive/non-cyclical names should fare better in the case of a general market downturn. The shares rallied after H1 results at end-July after reiterating full year profits guidance. Strong growth in Emerging Markets (China, Middle East). Medical Technology can be a target for M&A.
Risks to Smith & Nephew include a poor trading update on Thursday, a sustained market recovery/rally that favours risk assets over defensive/non-cyclicals, product disappointments and broker downgrades.
Brokers/analysts are bullish on the shares with only 6% suggesting Sell. This is supported by 93% of broker price targets suggesting upside from current levels, to a consensus target of 1418p, which is right in-line with our short-term target of repeating October’s own revisit of 2018 highs.
Next Event: Q3 Trading Report, 1 Nov (Thurs)
Latest Broker 12-Month Consensus: 35% Buy, 59% Hold, 6% Sell (full breakdown on request)
Source: DowJones Newswires, Reuters News, Bloomberg or Company Press releases
| 1wk | 1m | 3m | 6m | 1yr | 2yr | 3yr | 4yr | 5yr | |
| Perf % | 1.3 | -7.7 | -5.6 | -6.8 | -10.2 | 8.1 | 11.3 | 30.9 | 61.1 |
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Prepared by Michael van Dulken, Head of Research