Demant (Buy, TP: DKK400.00) - Improved long-term outlook

At its CMD, Demant updated its long-term outlook. It now targets 8–10% LCY growth (7–10%) including 6–8%-points organic growth and c2%-points M&A growth, and still sees incremental EBIT margin expansion. It expects the hearing-aid market to grow 4–6% p.a. in value (2–5%), as ASP is now guided fairly flat. We are positive on the Sirius-based Oticon Intent launch. We reiterate our BUY, and have raised our target price to DKK400 (375).

ODDO BHF SECURITIES MORNING NEWS – DETAILED COMMENTS 02/19/2024

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ODDO BHF SECURITIES MORNING NEWS – COMMENTAIRES DETAILLES 19/02/2024

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Demant A/S : Strong performance to continue

>Strong performance to continue - Demant’s Q4 results showed, with an organic growth of 10%, a continuation of the strong performance of previous quarters. On the back of the announced launch of the new hearing aid platform Oticon Intega, we expect that the market share gains in the hearing aid segment will continue also in 2024. Our organic growth forecast for 2024 stands at 7.4% (guidance 4-8%) for the company driven by an expected 8.0% for the hearing aid wholesale...

ODDO BHF SECURITIES MORNING NEWS – DETAILED COMMENTS 02/06/2024

Today we are adding CRH to the ODDO BHF European Large Caps Convictions List. It is exposed to the US economy, which we believe will continue to outperform the European economy, as borne out by the very robust job creation figures released last Friday. CRH generates 75% of its EBITDA in the 10 fastest-growing US states, and also has positive technical catalysts such as its future inclusion in the S&P TMI and Russell 1000 indices. - ...

ODDO BHF SECURITIES MORNING NEWS – COMMENTAIRES DETAILLES 06/02/2024

Nous faisons rentrer aujourd’hui CRH dans notre liste de valeurs recommandées Large Caps. Elle est exposée à l’économie américaine qui va continuer ,selon nous, de se montrer plus dynamique que l’économie européenne, comme en ont attesté les très bons chiffres de création d’emploi vendredi dernier. Elle réalise 75% de son EBITDA dans les 10 Etats américains à plus forte croissance et dispose en outre de catalyseurs techniques positifs comme sa future entrée dans les indices S&P TMI et...

Demant A/S : Strong organic growth continues – 2024 guidance implies s...

>Q4 review - Demant’s Q4 revenues of DKK 5,885m (+10.1% y-o-y, in line with expectations) were driven by strong organic growth of 10% (ODDO BHF/consensus 8%/10%). Hearing healthcare was up 12% organically, driven by an increase of 16% at Hearing aids, while Hearing care and Diagnostics were up 8%, respectively. Communication declined by 25% organically. H2 EBIT of DKK 2,134m (+31.8% y-o-y, margin 18.9%) was -6%/-1% below expectations. EPS of DKK 5.81 was a miss of exp...

Demant (Buy, TP: DKK375.00) - Communication follow Implants out

The 2023 guidance was reached but with sales and EBIT at the low end. The guidance for 2024 was strong: organic revenue growth of 4–8% YOY and EBIT of DKK4,600m–5,000m. We view the potential divestment of EPOS and management’s comments on the imminent launch of Oticon Intent as positives for the growth and earnings outlooks. We reiterate our BUY, and have increased our target price to DKK375 (355).

Demant (Buy, TP: DKK355.00) - 2024 set to be a normalised year

We believe investor focus will be less on the H2 results and more on 2024 guidance. We expect the guidance to be for 3–7% YOY organic revenue growth, c2% M&A revenue growth, a c1% FX headwind, and EBIT of DKK4,400m–4,800m. We believe H2 2023 is set for high market unit growth above the 4–6% structural growth rate on easy comparables, while 2024e looks more normalised at c5% unit growth. We reiterate our BUY and have raised our target price to DKK355 (335).

Demant (Buy, TP: DKK335.00) - Wholesale drives top-line growth

Q3 saw organic revenue growth of c13% YOY, driven by Hearing Aids, while Communications was hurt by weak underlying markets. Winding down the gaming segment will cost an additional DKK50m–100m. The 2023 guidance was narrowed to 12–13% organic revenue growth and DKK4,050m–4,350m in EBIT. Demant did not resume its share buybacks, which we see as a disappointment. We reiterate our BUY and DKK335 target price.

Demant A/S : Q3 review – another strong quarter

>Q3 review – another strong quarter - Demant’s Q3 revenues of DKK 5,403m (+11.1% y-o-y) were driven by impressive organic growth of 13% (vs ODDO BHF 12%/consensus 13%) and were 1% below expectations due to forex headwinds. No bottom line was reported on a quarterly basis.Hearing aids show strong performance - Hearing aids sales of DKK 2,430m (+23% y-o-y) benefited from very impressive organic growth of 25% (external sales), well ahead of our forecast ...

ODDO BHF SECURITIES MORNING NEWS – DETAILED COMMENTS 11/07/2023

Since its integration into our European Large Caps Convictions list on 11 January 2023, KPN has made a significant contribution to the list’s performance, thanks to its defensive profile and high dividend yield (11.33% total return). We have decided to take profits as the company is holding its Capital Market Day today. The outlook remains very bright, but the smaller-than-expected share buyback programme announced this morning in the group's press release could disappoint. - ...

ODDO BHF SECURITIES MORNING NEWS – COMMENTAIRES DETAILLES 07/11/2023

Since its integration into our European Large Caps Convictions list on 11 January 2023, KPN has made a significant contribution to the list’s performance, thanks to its defensive profile and high dividend yield (11.33% total return). We have decided to take profits as the company is holding its Capital Market Day today. The outlook remains very bright, but the smaller-than-expected share buyback programme announced this morning in the group's press release could disappoint. - ...

Demant (Buy, TP: DKK335.00) - Company consensus added

We have updated our preview with company-compiled consensus. For Q3, we forecast organic revenue growth of 14.8% YOY, driven by ongoing momentum in Hearing Healthcare, while we expect Communications to decline organically YOY. We expect the 2023 guidance to be revised to 12–14% organic growth and DKK4,150m–4,350m EBIT, and see scope for resumed share buybacks in H2e. We reiterate our BUY and DKK335 target price.

Demant (Buy, TP: DKK335.00) - Continuing with Oticon Real

While Demant will continue with Oticon Real, the main topic at the EUHA 2023 conference has been GN Hearing’s new platform and the Signia launch from WSA. For Q3, we expect organic revenue growth of 14.8% YOY (consensus 13.7%), driven by Hearing Healthcare. We expect revised 2023 guidance of 12–14% organic growth and DKK4,150m–4,350m EBIT, and we see scope for resumed share buybacks in H2. We reiterate our BUY and DKK335 target price.

Demant (Buy, TP: DKK335.00) - 2023 guidance raised again

Continued strong momentum in Hearing Healthcare in Q2, driven by Hearing Aids and a recovery in Diagnostics, led to a 2023 guidance increase to 11–14% organic growth and EBIT of DKK4,000m–4,400m. Management now expects market hearing aid unit growth to be above the historical 4–6% in 2023. Based on the strong H1, Demant said it may restart the share buyback programme in H2. We reiterate our BUY and have raised our target price to DKK335 (325).

Northern Lights

Demant A/S : Very impressive performance of hearing aids continues

>Q2 continued the strong performance - Demant’s preliminary Q2 revenues of DKK 5,647m (+15.4% y-o-y) were driven by an impressive organic growth of 12% (vs ODDO BHF 8%/consensus 11%) and were a beat of 2% of the consensus and 5% ahead of our forecast. H1 EBIT reached DKK 2,014m (+26.8% y-o-y, margin 18.1%, in line with ODDO BHF, but 5% below the consensus) driven by operating leverage in Hearing healthcare, while Communication had a negative impact. Very ...

Demant (Buy, TP: DKK325.00) - Focus on Wholesale

In the Q2 report our focus will be on Wholesale, the launch of Oticon Real, and the potential Diagnostics recovery. We forecast Q2 group organic growth of 12.2% YOY, split 13.3% from Hearing Healthcare and -5.8% from Communications. We expect no changes to the 2023 guidance but believe the non-cash write-downs of assets related to the implant business are likely to hit Q2. We reiterate our BUY and DKK325 target price.

Demant (Buy, TP: DKK325.00) - Hearing aids turning up the volume

Following the strong pre-announced Q1 results and recently revised outlook, we believe Demant is on track to reach the top end of its 2023 guidance. We see improvements in the hearing aid market, led by the US (c9% growth YOY in the commercial market and VA in Q1), driving 11.9% organic growth in Hearing Aids YOY and 10.2% in Hearing Care in 2023e. We reiterate our BUY and DKK325 target price.