Smith & Nephew Share Discussion Threads

[justiceforthemany] 11/12/2024 20:06

You guys with stakes here need to be proactive....contact the hierarchy and major institutional investors.

Deepak is also on LinkedIn.

This is trading at half what it would if listed on a fair and regulated exchange that is not infested with short sellers.
Stryker trades at a 40x P/E! More than double that of SN.

[foreverbull] 14/11/2024 07:33

FT article Big investors call for break-up of Smith & NephewThree top 20 shareholders say medical devices company should consider spinning off orthopaedics unitSmith and Nephew logoThe UK-headquartered company has been urged to spin off its orthopaedics division © DreamstimeThree major investors are pushing FTSE 100 company Smith & Nephew to consider a break-up of the business, after disappointing results last month reignited concerns about the medical device maker's strategy.The top 20 shareholders told the Financial Times that the UK-headquartered company should spin off its orthopaedics division, which makes replacement hip and knee joints, if management could not improve its performance.Two of the investors said that a private equity firm could be a potential buyer for the division, the largest by sales of the company's three business lines. "If they could find a buyer for the orthopaedic business that would be quite compelling," one of the investors said.Shares in Smith & Nephew have fallen more than 13 per cent since the end of October when it cut its growth forecast for the year, citing poor sales in China linked to changes in the country's procurement policies. It also said it would continue to struggle in 2025.But China accounted for just 5 per cent of sales last year according to its annual report, and investors said the challenges were more widespread, including a loss of market share in the US, where it makes the majority of its sales.Rupert Soames, chair of Smith & Nephew, told the Financial Times: "We have a well-formed strategy and a plan that we are diligently executing?.?.?.?it encompasses all three of our business lines."Swedish activist Cevian took a 5 per cent stake in the company earlier this year, saying it "owns fundamentally attractive businesses", but had failed to create shareholder value.Its shares are down more than 40 per cent over the past five years as it has struggled with high turnover of executives and underperformance in its orthopaedics division.Orthopaedics is the company's largest but slowest-growing division, behind wound management and sports medicine. Growth has been particularly slow in the US, where it has steadily lost market share over the past decade and is now the fourth-largest provider of replacement hips and knees.Figures from the American Joint Replacement Registry show that the company's Genesis product has gone from being used for 10 per cent of knee replacements in 2012 to under 5 per cent in 2023, falling behind the other three major providers, Zimmer BioMet, Stryker and Johnson & Johnson.Deepak Nath, chief executive since April 2022, has launched a 12-point plan to improve performance into 2025, including strengthening its supply chain and launching new orthopaedics technology to win back market share.But two of the investors said there was a lack of urgency to the turnaround efforts and that the board had not been open to alternatives, such as a spin off."The orthopaedics business is the problem child," said one investor. "They are struggling to fix it and there may be a better owner to that asset if they can't turn it around.""The fundamental risk for Smith & Nephew is that the orthopaedic business is the fourth-largest of an oligopoly of four?.?.?.?if they invest the same percentage of sales in research and development as the other three, the absolute investment is lower, and the others will pull ahead," another added.But one fund manager said he did not see the rationale for a break-up: "The orthopaedics business is capital intensive and relies on cash flow from sports medicine and advanced wound management to survive."Disappointing shareholder returns have led to attention from activist investors in the past: US firm Elliott Management mounted an activist campaign at Smith & Nephew in 2017, calling for it to break up the business.

[edwardt] 14/11/2024 07:12

Shareholders call for break up - ft article

[cerrito] 12/11/2024 08:38

I see that Soames has bought £50k worth of shares

[poppa wobbler] 10/11/2024 15:35

Watfordhornet.

Break-up bombshell rocks Smith & Nephew

[watfordhornet] 10/11/2024 12:22

Which papers is that in or can you post it?

[justiceforthemany] 10/11/2024 11:19

Break up as per Sunday papers.
Sum of parts worth more than current ridiculous market cap.

[value viper] 06/11/2024 13:48

China falls

[uhound] 06/11/2024 12:13

SN. Price target cut to £10.50 by Berenberg.

However, some would say this is now offering very good value.

[pugugly] 06/11/2024 11:20

Trumped? Fallout from possible cutback in US medical support for households?

[philanderer] 05/11/2024 00:24

On Monday, Canaccord Genuity adjusted its outlook for medical equipment manufacturer Smith & Nephew (NYSE: SNN), reducing the price target from $32.00 to $27.00 while keeping a Hold rating on the stock.


(Two ordinary shares of Smith & Nephew (SN) are represented by one American Depositary Share (ADR).

[philanderer] 05/11/2024 00:16

Jefferies cuts Smith & Nephew target but stays optimistic


Jefferies has slashed its target price for medical devices maker Smith & Nephew from 1,400p to 1,250p after challenges in China weighed heavily on third-quarter results.

Nevertheless, the broker kept a 'buy' rating on the stock, saying that the shares' valuation is undemanding by historical standards.

Smith & Nephew reported on Thursday that it was cutting its 2024 and 2025 guidance on the back of struggles in China, where it was impacted by worse-than-expected headwinds across the surgical businesses.

"This is a clear step back as investors were slowly starting to reward management for improved visibility and consistency," Jefferies said in a research note on Monday.


"While unhelpful, China setbacks seem temporary and SN is slowly reaping the benefits from portfolio shifting toward faster-growth segments and recent R&D efforts, which support higher, sustainable growth."

The stock has dropped by around 20% over the past three months, leaving its close to an all-time low price-to-earnings ratio of just 12.5. Jefferies said it sees "ample room for [a] re-rating".



Sharecast

[justiceforthemany] 03/11/2024 22:02

Let's see what the activist Cevian do here.

[wad collector] 31/10/2024 20:28

Go away you multiboard ramper.

Seems that the reaction has been excessive partly because the drop has been on a bad day for the FTSE.
Time to add maybe.

[justiceforthemany] 31/10/2024 18:04

RSI 21
Hargreaves have a forward P/E of 13.4
Historical average is 18

[dope007] 31/10/2024 13:04

They reward nothing and trash blips, and follow that up by selling the company off cheap

[ricardo montalban] 31/10/2024 13:02

Back to the same price as 2013, U.K. indexes really are a black hole for capital destruction.

[keyno] 31/10/2024 12:50

The word "headwind(s)" mentioned six times in that t/u. Nice to have something to blame, blame, blame, blame, blame, blame.

[justiceforthemany] 31/10/2024 10:18

Trading at half peer valuation.
Founded 1860!

[essentialinvestor] 31/10/2024 10:02

SN has had a succession of CEO's over the last decade, each with a different action plan, areas of focus, yet the result has been similar - early promise followed by disappointment.

A bid may be the best hope.

The balance sheet, once rock solid, has been geared through acquisitions.