Carl Zeiss Meditec AG Considerable downside to consensus forecasts in the near and mid-term

Research evidence excerpt

Carl Zeiss Meditec AG Considerable downside to consensus forecasts in the near and mid-term

J P M O R G A N Europe Equity Research

13 May 2026

Carl Zeiss Meditec AG Underweight

AFXG.DE, AFX GR

Considerable downside to consensus forecasts in the Price (12 May 26):€28.56

near and mid-term ▼Price Target (Dec-27):€21.70 Prior (Dec-27):€22.40

The new near-term and mid-term guidance suggests considerable downside to

consensus EBITA forecasts (24% for this year, mid twenties in FY26/27 and European Medical Technologies &

ServicesFY27/28 and mid teens by FY28/29). This assumes the company delivers on its

guidance of achieving c15% margins in FY28/29, c600bps of improvement on David Adlington AC

FY25/26 (we are struggling to remember another example of such margin (44-20) 7134-5828

david.adlington@jpmorgan.com

expansion in the sector in the last 20 years).

Anchal Verma

Bulls will point to the fact that this can be achieved entirely via cost savings. This (44-20) 3493-6144

anchal.verma@jpmorgan.com

is (mostly) true, but does assume a return to MSD top line growth (H1 was -2.8%).

Philip S Omnou

We see revenue headwinds from China exposure (21% of group revenues declining

(44-20) 3493-5648

MSD) and an exit from upprofitable areas which management was not able to philip.omnou@jpmorgan.com

quantify. J.P. Morgan Securities plc

The cost savings are back-end loaded. We set out an analysis which illustrates how Specialist Sales contact details:

there is downside risk to consensus forecasts over the near and mid-term. On our Marjan Daeipour - Specialist Sales -

updated forecasts, the shares are trading on a FY25/26 PER of 20.9x. If the European Healthcare

company delivers on its ambitions, EPS growth would be decent (FY26-29E (44 20) 7134-1329