Smith & Nephew Share Discussion Threads

[broadwood] 30/4/2015 07:56

Smith & Nephew has booked Q1 revenue of $1,104 million, up 3% on an underlying basis. Reported growth of 3% includes effects of -8% currency headwind offset by 8% benefit from acquisitions.

The company's full-year outlook remains unchanged, it said. "We continue to expect to deliver higher underlying revenue growth in 2015 than in 2014 and an improvement in trading profit margin," it said in a statement.

"We expect the phasing of revenue and profit to be more pronounced in 2015 than 2014, with profitability in the second half being significantly stronger than the first.

"As previously guided we expect a significant currency headwind in 2015. If current exchange rates prevail throughout the year we expect the headwind to be -7% on reported revenue.

"We are pleased with our start to 2015 and are on track to make further progress during the year."

Referring to the Q1 performance, CEO Olivier Bohuon said:

"We are pleased with our start to 2015 and are on track to make further progress during the year.

"In particular, we increased Q1 revenue by 22% across the Emerging Markets and delivered 9% growth in Sports Medicine Joint Repair. We completed the integration of ArthroCare and the expected benefits of our strong combined sports medicine portfolio are starting to come through.

"In Reconstruction, strong sales of our JOURNEY II Knee System drove 3% growth in US Knee Implants, and, through our actions, we delivered an improved Advanced Wound Care performance."

Other highlights:

· Strong 9% revenue growth in Sports Medicine Joint Repair, particularly in the US, reflects the continued strengthening of our franchise following the acquisition of ArthroCare

· JOURNEY◊ II Total Knee System continues to perform very well, driving 3% US Knee Implant revenue growth

· Advanced Wound Care revenue performance improving, up 9%

· Continued momentum in Emerging Markets with 22% revenue growth. Latin American presence further strengthened with distributor acquisition in Colombia

[leeson31] 11/4/2015 10:26

yep, key level.. >>

[its the oxman] 10/4/2015 22:41

Could break 1200p next week.

[mike740] 23/3/2015 14:02

UPGRADE.....23 Mar 2015 Smith & Nephew PLC SN. Goldman Sachs Buy 1,158.50 1,148.00 1,200.00 1,300.00 Upgrades

SP TARGET 1300p

[broadwood] 23/3/2015 10:26

Smith & Nephew has been raised to 'buy' from 'neutral' at Goldman Sachs on Monday due to improving fundamentals and under-appreciated strategic value.
Goldman also increased its target price on the stock, up to 1300p from 1200p.

The bank said Smith & Nephew's stock has been a notable under-performer despite solid FY14 results, with sentiment driven largely by questions on whether the company is still a likely acquisition target.

"We continue to believe that further consolidation in orthopaedics - with Smith & Nephew being acquired by a larger player - makes strategic sense, though recognise the multiple hurdles to a potential transaction," said Goldman.

The bank expects 2015 to mark an important turning point for the company. "We expect organic top-line growth to re-accelerate to around 5% per year versus the 2009-14 average of below 3% as Smith & Nephew benefits from ongoing utilisation recovery in the US, and addresses some of the recent causes of underperformance in the wound business," said Goldman.

It added that it also sees meaningful opportunities for margin expansion "driven by integration of Arthrocare and the $120m efficiency program announced in 2014."

[its the oxman] 06/3/2015 10:37

Also bought in on recent fall. Only a matter of time before they are bought out at a decent premium. Quality operation.

[mike740] 05/3/2015 10:50

Interesting to see Matt Earl (The Dark Destroyer)as gone long on the stock here. hes the chap who alerted everyone to his TUNG short and as a fantastic record.

Taken from his Blog.

Heres what he says........

.Wednesday, 4 March 2015
Smith & Nephew (SN/) ... coldwater morning

I've bought a wodge of Smith & Nephew (SN/ LN) at 1140p/shr and an 1100 put.

Yesterday's move by Stryker (SYK US), in announcing a $2 billion extension to its authorised buy back scheme, seems to me to be a mere attempt to pour cold water over S&N's potential purchase price. And so I reckon that suggests a bid could be imminent. North of 1350p/shr would be satisfactory.



No doubt we will hear more from Matt.

[mike740] 05/3/2015 10:33

Smith & Nephew plc Stock Rating Reaffirmed by Sanford C. Bernstein (SN)
March 3rd, 2015 Updated 5th March 2015

Smith & Nephew plc (LON:SN)‘s stock had its “outperform221; rating restated by investment analysts at Sanford C. Bernstein in a note issued to investors on Tuesday. They currently have a GBX 1,350 ($20.80) target price on the stock. Sanford C. Bernstein’s target price would suggest a potential upside of 12.68% from the company’s current price.

Shares of Smith & Nephew plc (LON:SN) traded down 5.34% during mid-day trading on Tuesday, hitting GBX 1135.00. The stock had a trading volume of 11,677,271 shares. Smith & Nephew plc has a one year low of GBX 858.50 and a one year high of GBX 1211.00. The stock’s 50-day moving average is GBX 1180. and its 200-day moving average is GBX 1093.. The company’s market cap is £10.136 billion.

Several other analysts have also recently commented on the stock. Analysts at Numis Securities Ltd reiterated a “hold” rating and set a GBX 1,105 ($17.03) price target on shares of Smith & Nephew plc in a research note on Monday. Analysts at AlphaValue reiterated a “buy” rating and set a GBX 1,399 ($21.56) price target on shares of Smith & Nephew plc in a research note on Friday. Analysts at Cenkos Securities Ltd reiterated a “buy” rating and set a GBX 1,200 ($18.49) price target on shares of Smith & Nephew plc in a research note on Thursday, February 12th. Finally, analysts at Berenberg Bank raised their price target on shares of Smith & Nephew plc from GBX 990 ($15.26) to GBX 1,080 ($16.64) and gave the company a “hold” rating in a research note on Monday, February 9th. Three research analysts have rated the stock with a sell rating, ten have issued a hold rating and eight have given a buy rating to the company’s stock. The stock presently has an average rating of “Hold” and an average target price of GBX 1,107.59 ($17.07).

Smith & Nephew plc is a global medical devices business operating in the markets for orthopaedic reconstruction and trauma, endoscopy (LON:SN) and advanced wound management. It operates in three segments: Orthopaedics, Endoscopy and Advanced Wound Management.

[knighty0001] 06/2/2015 20:00

Healthpoint = Endpoint. HP802 is dead in the water.

[broadwood] 02/1/2015 16:33

That's why I bought 'em.

[scoble2] 02/1/2015 16:25

Questor share tips for 2015

Takeover Target
Smith & Nephew
£11.88
Buy

Smith & Nephew has been one of those FTSE names which has spent the best part of five years as a hotly-tipped takeover target. But 2015 could be the year that it all comes true for shareholders in the UK’s biggest orthopaedics company.

A six-month cool off period which prevented US rival Stryker from making a return for the British artificial hip maker expired in November. Takeover rumours sent shares 6pc higher on Christmas Eve and the smart money is now on a deal being struck in the first half of the year. A bid valuing the group at £13bn would equal about £14.55 a share a 28pc premium to the year end closing price.

Stryker has a huge impetus to act now to avoid being sidelined by the wave of consolidation that has already taken place in the sector: Johnson & Johnson has already acquired Swiss med tech rival Synthes, Zimmer has snapped up Biomet and Medtronic and Covidien are in the process of pushing through their $43bn deal through competition regulators. Either way, Smith & Nephew is benefiting from an ageing population and a boom in technology which has transformed sports medicine. In October, it reported a nine-month trading profit up 1pc to £695m on sales 2pc higher at £3.2bn.

The shares trade on 20 times forecast earnings, and offer a prospective dividend yield of 1.7pc. Always the bridesmaid, this could be the year Smith & Nephew makes it to the altar. Buy.

[abcd1234] 02/1/2015 11:51

is there a link to that piece ?...ta

[scoble2] 02/1/2015 09:24

A six-month cool off period which prevented US rival Stryker from making a return for the British artificial hip maker expired in November. Takeover rumours sent shares 6pc higher on Christmas Eve and the smart money is now on a deal being struck in the first half of the year. A bid valuing the group at £13bn would equal about £14.55 a share a 28pc premium to the year end closing price.

[scoble2] 29/12/2014 13:46

chatter says £13 per share or £13.25

[steeplejack] 23/12/2014 23:20

ADS closed at $38 which on the basis of 2:1 ord, at $1-55,equates to a London equivalent of £12-26p some 12.5% higher than Tuesday's close.

[bill hunt] 23/12/2014 18:38

Up 13% in the states on Stryker comments.

[broadwood] 28/11/2014 16:31

Director buying

[redartbmud] 27/11/2014 16:03

Sp in the hands of rumour mongers for now. Volatility rules Ok.

[broadwood] 27/11/2014 15:56

Smith & Nephew's shares rose after chief executive Olivier Bohuon reportedly told employees he has no intention of leaving the company following speculation that he was taking the helm of Sanofi.
Bohuon told employees at a town hall meeting in Switzerland that he was "very happy" at the company, according to Bloomberg.

Earlier this week French newspaper Le Figaro reported that Sanofi chairman Serge Weinberg had chosen Bohuon as successor to Chris Viehbacher, who stepped down as chief executive in October

[redartbmud] 24/11/2014 17:08

bw

Sold half of mine today at £11.41. Hedging my bets - it may be better to travel than to arrive. I am not sure that the Americans wll bid. The half that is left are now at an average of £2.10 each, so will give me a good income yield going forward.
Your purchase could be well timed. Fingers, and toes, crossed.

red

[broadwood] 24/11/2014 16:14

Red - Bought these a while back in the hope/expectation another bid would come at the end of the six month period - which is today.

We live in hope.

[redartbmud] 24/11/2014 15:25

Fact or fiction?

[broadwood] 24/11/2014 15:16

US outfit Stryker is laying the groundwork of another bid for British rival Smith&Nephew.
The manufacturer of surgical implants has been in discussion with advisers regarding the possible financing of a deal and the potential anti-trust hurdles which it might face, should it proceed with a transaction which is valued at approximately $16bn.

The potential takeover target and its advisers were already aware of the American company's interest, but it was still possible that its suitor might pull out, Bloomberg reported.

Stryker was considering pursuing a so-called tax-inversion structure, which would see it re-domicile to the UK.

The legal limitation on the US, Michigan-based company's ability to make another take-over attempt, after it pulled out from a bid earlier in the year, was set to expire in the week just started.

As of 14:54 shares of Smith&Nephew were rising by 4.33% to 1,137.15p.