Source: Sharecast
"Although we see new mid-term guidance as potentially achievable from 2027, we see material risk of downgrades to 2026 guidance through the year," the bank said.
"With the 12 Point Plan completed and shares up 22% in 2025, our recovery thesis is largely played out, and the risk of FY2026 guidance downgrades now outweighs limited near-term catalysts." As such, RBC said it was moving to the sidelines until clearer evidence of 2026 guidance achievability emerges.
In a separate research note on Monday, Citi reiterated its ‘buy’ rating on the medical technology company after attending the second part of its capital markets day in NYC.
Citi said the event focused on innovation across all divisions, with key opinion leaders sharing their positive experience with S&N products.
Key takeaways from the CMD included management striking a constructive tone on US knee momentum, noting Legion MS is already having an impact on S&N’s share momentum.
Citi said it walked away somewhat more impressed by S&N’s competitive positioning in the ASC (orthopaedic ambulatory surgery centre) segment, although Stryker’s upcoming robotic launch will be one to watch.
Citi said the breadth of S&N’s sports medicine portfolio is likely under-appreciated by the market, in its view.
"All in, we walked away incrementally more positive: we continue to see the current valuation of circa 14x P/E (2026E) versus the 2015-2019 range of 15-23x P/E as undemanding, and reiterate buy."
At 1040 GMT, the shares were up 0.3% at 1,219p.