Smith & Nephew: Canaccord Genuity Maintains Hold, Raises PT to $36 from $28

Smith & Nephew: Canaccord Genuity Maintains Hold, Raises PT to $36 from $28

Canaccord Genuity has maintained its Hold rating for Smith & Nephew (SN) but raised the price target from $28 to $36. The update comes following Smith & Nephew's robust performance in the second quarter and first half of 2025, which exceeded market expectations.

Smith & Nephew reported a 6.7% underlying growth in revenue for the quarter, driven by sequential acceleration across all regions and business units. The company's free cash flow increased by 70% to $250 million in the first half, reflecting operational efficiencies and a $500 million share buyback announced for the second half of 2025. The company's earnings call highlighted significant advancements in revenue growth and profitability [1].

The company's business units performed well, with notable growth in Sports Medicine, Wound, and Orthopaedics. The company's 12-Point Plan drove 30.6% operating profit growth and 14.5% margins in H1 2025, fueled by cost discipline and revenue leverage. The company's ability to navigate headwinds and achieve 5.0% underlying revenue growth underscores its operational resilience [3].

Analysts maintain a mixed sentiment towards Smith & Nephew. Berenberg Bank maintains a Hold rating with a price target of £13.00, while the current analyst consensus is a Moderate Buy with an average price target of £1,343.80. The stock has a market cap of £11.72 billion and a P/E ratio of 30.87. Corporate insider sentiment is negative, with 73 insiders selling their shares over the past quarter [1].

Smith & Nephew's strong performance positions it well for the remainder of the year, with a focus on continued growth and profitability. The company's ability to navigate headwinds and achieve 5.0% underlying revenue growth underscores its operational resilience [3].

References:
[1] https://www.ainvest.com/news/berenberg-maintains-hold-rating-smith-nephew-13-00-price-target-2508/
[2] https://www.ainvest.com/news/expert-analysis-clarkson-itm-power-ao-world-smith-nephew-phoenix-group-2508/
[3] https://www.ainvest.com/news/smith-nephew-2025-transformation-payoff-profitability-innovation-shareholder-returns-2508/