UBS cuts Smith & Nephew target on competitive threats to three franchises

What Brokers Say Health Written by: Ian Lyall 16:01 Tue 25 Aug 2026 --> Disclaimer No investment advice About this content Editorial Standards & Policies Share article About this content × About Ian Lyall Ian Lyall, a seasoned journalist and editor, brings over three decades of experience to his role as Managing Editor at Proactive. Overseeing Proactive's editorial and broadcast operations across six offices on three continents, Ian is responsible for quality control, editorial policy, and content production. He directs the creation of 50,000 pieces of real-time news, feature articles, and filmed interviews annually. Prior to Proactive, Ian helped lead the business output at the Daily... Read more About the publisher Proactive financial news and online broadcast teams provide fast, accessible, informative and actionable business and finance news content to a global investment audience. All our content is produced independently by our experienced and qualified teams of news journalists. Proactive news team spans the world’s key finance and investing hubs with bureaus and studios in London, New York, Toronto, Vancouver, Sydney and Perth. We are experts in medium and small-cap markets, we also keep our community up to date with blue-chip companies, commodities and broader investment stories. This is content that excites and engages motivated private investors. The team delivers news and unique insights across the market including but not confined to: biotech and pharma, mining and natural resources, battery metals, oil and gas, crypto and emerging digital and EV technologies. Use of technology Proactive has always been a forward looking and enthusiastic technology adopter. Our human content creators are equipped with many decades of valuable expertise and experience. The team also has access to and use technologies to assist and enhance workflows. Proactive will on occasion use automation and software tools, including generative AI. Nevertheless, all content published by Proactive is edited and authored by humans, in line with best practice in regard to content production and search engine optimisation. Smith & Nephew PLC ( LSE:SN ) View Price & Profile UBS cuts Smith & Nephew target on competitive threats to three franchises Published: 16:01 25 Aug 2026 BST UBS has cut its price target on Smith & Nephew PLC (LSE:SN) to 1,120p from 1,300p, warning that even the medical device group's recently reduced guidance for this year remains at risk. The neutral rating is unchanged, with the new target implying about 3.5% upside from Monday's close of 1,082p. Analyst Graham Doyle said investor interest has picked up sharply following the guidance cut and the unexpected departure of the finance director. His conclusion is unflattering. To hit the 4% organic growth target for this year, Smith & Nephew would need roughly 6% growth in the second half, which would be its second strongest such performance in a decade. UBS forecasts 3.2% instead, and models trading profit of $1.25 billion against management's $1.3 billion guidance. The medium-term picture looks worse. Management is targeting 6% to 7% organic revenue growth through 2028, against a 3.3% compound annual rate actually delivered between 2015 and 2025. UBS models 4%, leaving its earnings forecasts 4% to 9% below consensus. The bank identifies three franchises accounting for roughly 10% of group revenue that now face fresh competition. Santyl, a wound debridement ointment generating about $400 million a year, faces reimbursement pressure from prior authorisation requirements and a potential rival in MediWound's EscharEx, which beat it across several endpoints in a phase two head-to-head study and could launch from 2027. OXINIUM, the nickel-free implant material worth roughly $100 million of US revenue, now competes with Stryker's Triathlon Gold, a possible $20 million headwind. CORI, the handheld surgical robot with more than 1,100 installations and about $75 million of revenue, faces Stryker's newly launched Mako RPS, backed by an installed base exceeding 3,000 units. The Landmark knee platform, due in the US this quarter, is described as strategically important but unlikely to shift the numbers near-term. UBS argues most of the anticipated benefit is already in consensus estimates. Valuation offers some cushion, with the shares on about 12 times forward earnings and a sum-of-the-parts calculation pointing to 1,370p. Doyle notes such portfolio businesses rarely realise that value. Continue reading