Demant A/S "Winning today as AI enables market expansion tomorrow;..."

Research evidence excerpt

Demant A/S "Winning today as AI enables market expansion tomorrow;..."

Global Research

21 May 2026ab

Demant A/S Equities

DenmarkWinning today as AI enables market expansion

tomorrow; reiterate Buy Advanced Medical Devices

12-month rating Buy

12m price target DKr273.00Internal tools to win/upgrade in 2026, and key AI beneficiary beyond this

Prior : DKr240.00

Demant may be amongst the best performing European Medtech stocks YTD, but we

see plenty of room to run, driven by 1) idiosyncratic factors near-term, and 2) Price (19 May 2026) DKr228.20

technology-driven market expansion medium-term. Near-term, new form factor Oticon RIC: DEMANT.CO BBG: DEMANT DC

Zeal (its first meaningful in-the-ear product) has launched well and suggests scope for

upgrades this year, but we also believe its scalability is underappreciated. Medium-term, Trading data and key metrics

we write extensively about the likelihood of an AI-led market expansion for incumbent 52-wk range DKr288.00-176.20

hearing aid players which could prove current investor sentiment on the market is much Market cap. DKr48.2b/US$7.49b

too negative. We reiterate our Buy rating and preference over Sonova (Neutral). Shares o/s 211m (ORD)

Free float 41%

True extent of Zeal's platform-like advantages still underappreciated Avg. daily volume ('000) 494

New form-factor Oticon Zeal drove a 3% Q1 consensus revenue beat, but investor Avg. daily value (m) DKr99

feedback suggests the true depth and duration of Zeal's competitive advantage remains Common s/h equity (12/26E) DKr12.0b

underappreciated. Although Zeal is not technically a new platform, commercially it P/BV (12/26E) 4.1x

behaves like one by expanding its category, improving conversion, and raising barriers to Net debt to EBITDA (12/26E) 3.1x

entry.