Edison Investment Research - Smith Nephew (SN) QuickView: Stronger H2 needed to deliver 2016 targets

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Edison Investment Research

QuickView: Stronger H2 needed to deliver 2016 targets

Smith & Nephew (S&N) reported slower revenue growth in H116 than management expectations, due principally to the trading problems experienced by the sector in the emerging markets, particularly China and the Middle East. The company indicates that this is improving, as China starts to return to growth (as seen in the Sports Medicine division in Q2), but we expect the weakness to continue through H2. Its 6% premium on 2016e P/E to the average of its global orthopaedic peers is supported by its leading position in innovative areas such as robotics, although to maintain this it needs to continue to innovate and improve its growth profile.

02/08/2016 2 EN

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Smith & Nephew

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United States

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Edison Investment Research

Edison is an investment research and advisory company, with offices in North America, Europe, the Middle East and AsiaPac. The heart of Edison is our world renowned equity research platform and deep multi-sector expertise. At Edison Investment Research, our research is widely read by international investors, advisors and stakeholders. Edison Advisors leverages our core research platform to provide differentiated services including investor relations and strategic consulting.

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QuickView: Stronger H2 needed to deliver 2016 targets

Update: Growth on an accelerating path

QuickView: Well placed to deliver on 2015 targets

The Pebble Group - Two distinct businesses in one

MotorK - Strong pipeline and cash target reaffirmed

Newron Pharmaceuticals - Evenamide notches up another win (study 008A)

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