Smith & Nephew: Credit Suisse upgrades stock

(CercleFinance.com) - Credit Suisse has upgraded its rating on Smith & Nephew shares to 'outperform' (from 'neutral') and has increased its target price for it to 1805p (from 1560p), following increased 2021-23 estimates for the UK medical equipment supplier.


The broker believes that it is an underappreciated card to play on the near-term elective surgery recovery, and that investors are underestimating the combined power of recently acquired growth drivers with corresponding profitability leverage in the medium term.

"As the drivers become clearer gaining the confidence of investors, we expect Smith & Nephew stock to reverse its material underperformance over the past 12 months," the broker adds.

The share is up over 2.5% at lunchtime on Wednesday.


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