European MedTech "Hearing aid feedback - interest on the rise and less ..."

研报英文原文证据摘录

European MedTech "Hearing aid feedback - interest on the rise and less ..."

Valuation Method and Risk Statement

Risks generally applicable to the healthcare sector include the following: development risk:

uncertainty regarding the timing, efficacy, and market potential of new products and

technologies; commercial risk: threats from new/existing competition, pricing pressure;

regulatory risk: timing/status of approvals, changes in labelling or new earnings on existing

products and technologies; patent risk: products losing patent protection may face significant

market share/price erosion, potential litigation; currency risk: due to the mismatch between

geographic location of cost-base and sales. We use DCF valuations for all of our EU coverage.

Risks to our Demant thesis include further loss of share in the Managed Care channel;

competitive pressures from new platform launches by large competitors; consumer sentiment

weighing on market demand; shortening R&D cycles driving greater R&D investments; and

the entry of new, non-traditional competitors into the hearing health space. Our valuation is

DCF-derived (WACC: 8.0%, TG: 2.0%).

Risks to our Sonova thesis: FX, as exposure to the US dollar and the Euro constitutes >80% of

revenues; Hearing aids are a largely out-of-pocket expense in most territories, and so have an

element of cyclicality in our view; the hearing implants business has suffered from product

recalls in the past and this remains a risk. It faces product liability claims in relation to a past

recall in this business but recently announced that it had settled the majority of claims

consistent with the provision previously taken for this risk. Our price target is DCF-derived

(WACC: 8.4%, TG: 2.0%).

European MedTech 8 June 2026 ab 2