Swiss bank UBS has downgraded its recommendation on Smith & Nephew PLC’s (LON:SN.) shares to ‘neutral’ from ‘buy’ due to scepticism over the share of the surgical robots market the medical equipment manufacturer will be able to command.
UBS also cut Smith & Nephew’s price target to 1,340p from 1,363p.
“Our underlying market view is that the adoption of surgical robots will be widespread in orthopaedics has not changed. However, we now believe our initial assumption of S&N’s share of the market was too positive,” UBS analysts said.
The bank also said it sees a risk of a potential slowdown in the hip and knee market and could not be more positive on the company’s prospects until new CEO Namal Nawana unveils a "concrete strategy" for the group.
Shares in Smith & Nephew pared early losses and were trading down 0.3% at 1,359p in mid-morning trade.