First Read: Carl Zeiss Meditec AG "Q2 beats and game changing cost savings..."

研报英文原文证据摘录

First Read: Carl Zeiss Meditec AG "Q2 beats and game changing cost savings..."

Forecast returns

Forecast price appreciation -2.2%

Forecast dividend yield 1.6%

Forecast stock return -0.6%

Market return assumption 7.7%

Forecast excess return -8.2%

Company Description

Carl Zeiss Meditec is a global medical technology company and a subsidiary of Carl Zeiss AG.

The company is headquartered in Jena, Germany. Its portfolio comprises products for

screening, diagnostics and treatment of ophthalmic diseases, including retinal disorders,

glaucoma and cataracts. It also offers solutions for the visualisation of microsurgery and other

technologies. The company operates in two business segments, ophthalmic devices and

microsurgery. The microsurgery division includes activities of neuro, ear, nose and throat

surgery, and activities in the field of intraoperative radiation.

Valuation Method and Risk Statement

Risks generally applicable to the healthcare sector include: (1) development risk: uncertainty

regarding the timing, efficacy and market potential of new products and technologies; (2)

commercial risk: threats from new/existing competition, pricing pressure; (3) regulatory risk:

timing/status of approvals, changes in labelling or new earnings on existing products and

technologies; (4) patent risk: products losing patent protection may face significant market

share/price erosion, and potential litigation; and (5) currency risk: due to the mismatch

between geographical location of cost base and sales.

We use a discounted cash flow valuation approach for all stocks in our coverage given the

stability of the cash flows within the European medtech sector and the fact that this approach

best captures the long-term growth prospects of the sector. For Zeiss our key assumptions