Medical Equipment Industry: Medtech left behind as macro improves; waiting game continues

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Medical Equipment Industry: Medtech left behind as macro improves; waiting game continues

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Medical Equipment Industry

Medtech left behind as macro improves;

waiting game continues

Price Objective Change

22 June 2026

Left out of rally again after the Strait of Hormuz reopens Equity

Over the past 13 weeks, the Japanese and US medtech sectors have underperformed Japan

their respective markets by 5% and 21%. Since the reopening of the Strait of Hormuz, Medical Technology

medtech has increasingly been left out of the broadening rally. In the US, recent

softness in patient volumes and concerns over inflation resilience are also weighing on KeiResearchTakeuchiAnalyst>>

the sector. While we think the risk of additional tariffs on medical devices has declined BofAS Japan

+81 3 6225 8104

and valuations are inexpensive, we believe it will take time for buying interest to kei.takeuchi@bofa.com

broaden to the sector. Ahead of Apr-Jun earnings, we summarize our stance as neutral Ritsuo Watanabe >>

on the sector overall, with a focus on stock selection. Research Analyst

BofAS Japan

+81 3 6225 6259

ritsuo.watanabe@bofa.comStock selection into Apr-Jun earnings: Nakanishi/Shimadzu

Into Apr-Jun earnings, we view Nakanishi as the most promising name. An upward

revision to full-year guidance looks almost certain, and any update on new surgical

products would provide an additional positive factor. We view Shimadzu’s CEO small

meeting on July 13 positively. We think an update on Tescan will lead investors to Exhibit 1: We change POs of medtech

recognize the company’s high exposure to the semiconductor market. companies under coverage

Ratings, share prices and price objectives (¥)

Terumo/Olympus detailed analysis; earnings/PO revisions