Mid-year Outlook: Stay Selective

Research evidence excerpt

Mid-year Outlook: Stay Selective

Foundation

June 23, 2026 03:30 AM GMT

Morgan Stanley & Co. International plc+MEU MedTech & Services | Europe Aisyah Noor

Equity Analyst

Mid-year Outlook: Stay Aisyah.Noor@morganstanley.comAlejandra Galindez +44 20 7425-6177

Research Associate

Alejandra.Galindez@morganstanley.com +44 20 7677-2699

Selective

Healthcare

Europe

Signs of growth inflection coupled with sector Industry View In-Line

underperformance YTD provides opportunities for stockpicking. What’s Changed

Incremental cost pressures drive our downside to 2027E and we Biomerieux SA (BIOX.PA) From To

Price Target €100.00 €64.00

remain selective, favouring idiosyncratic growth momentum and Rating Equal-weight Underweight

FCF resilience. Coloplast A/S (COLOb.CO) From To

Price Target DKr 417.00 DKr 345.00

Key Takeaways Demant A/S (DEMANT.CO) From To

Rating Equal-weight Overweight

Gradual growth inflection amid significant de-rating YTD creates a more

Price Target DKr 210.00 DKr 290.00

compelling risk reward

Fresenius SE & Co KGaA

Our work on tariffs and cost pressures drives our broader EBIT downside to (FREG.DE) From To

Price Target €56.00 €48.00

consensus, and we retain our in-line view for EU MedTech

Top Pick - FREG.DE

We turn more constructive on Hearing Aids on positive earnings momentum,

Koninklijke Philips NV

upgrading our ratings on Demant (OW) and Sonova (EW) (PHG.AS) From To

Price Target €26.00 €25.00

Reiterate Top Pick on FRE on defensive growth and appealing valuation

Qiagen NV (QGEN.N) From To

Demand recovery supports a sector re-rating, offset by cost pressure. We

Price Target US$40.00 US$42.00

forecast European MedTech sales CAGR of +5% for FY26-28, in line with the 20Y

Qiagen NV (QIA.DE) From To