Demant: Downgrade to Market-Perform - Valuation already reflects likely guidance upgrade while H2 is a crowded launch window

Research evidence excerpt

Demant: Downgrade to Market-Perform - Valuation already reflects likely guidance upgrade while H2 is a crowded launch window

17 July 2026

Rating Downgrade

Susannah Ludwig

+41 582 723 127

European Consumer Medical Technologies susannah.ludwig@bernsteinsg.com

Estelle Pang, CFADemant A/S +44 20 7676 7646

Rating estelle.pang@bernsteinsg.com

Market-Perform (Outperform OLD) Richard Hombach

+44 20 7762 1858

Price Target richard.hombach@bernsteinsg.com

DEMANT.DC 276.00 DKK (267.00 OLD) Specialist Sales

Christian Moore

+1 917 344 8555

christian.moore@bernsteinsg.com

Demant: Downgrade to Market-Perform - Valuation already

reflects likely guidance upgrade while H2 is a crowded launch

window

We are downgrading Demant to Market-Perform with a new target price of DKK Close Date 16 Jul 2026

276. After a difficult 2025, Demant has had a strong start to 2026 on the back of a slight

DEMANT.DC Close Price (DKK) 284.60

improvement in the hearing aid market and a successful launch of Oticon Zeal, its new in-

Price Target (DKK) 276.00

the-ear (“ITE”) hearing aid. We expect Demant to upgrade guidance at Q2 results on August

Upside/(Downside) (3)%

11th on the back of a strong performance in the U.S., including the VA, and more limited FX 52-Week Range 286.80/175.00

headwinds. However, with the stock up +33% ytd and now trading at a 3 turn premium to EDME 1,598.24

close peer Sonova (22x vs. 19x), we think the upgrade is already in the price. Our sensitivity FYE Dec

analysis (Exhibit 9) suggests that at a normalized multiple of 18–19x (i.e., a slight premium Div Yield NA

to the European medtech sector but in line with peer Sonova), even EBIT of DKK 4,900m, Market Cap (DKK) (M) 60,265

+14% versus the current guidance midpoint, is already implied by the current share price.. EV (DKK) (M) 80,000