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SN.: Trading Margins Will Expand As New Devices Boost Profitability

Update shared on 27 Nov 2025

Fair value Increased 0.90%
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AnalystConsensusTarget's Fair Value
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1Y
23.0%
7D
-3.6%

Analysts have modestly raised their price target for Smith & Nephew from $14.37 to $14.50. This reflects incremental adjustments to fair value and slightly revised underlying financial assumptions.

What's in the News

  • Smith & Nephew maintained earnings guidance for 2025, expecting trading profit margin to expand to 19.0%–20.0% and accounting for a net impact of $15–$20 million from tariffs in 2025, as previously outlined (Corporate Guidance).
  • New comparative study findings indicate Smith+Nephew's PICO single-use negative pressure wound therapy (sNPWT) device significantly reduces wound dehiscence, hospital length of stay, and costs in orthopedic and cardiovascular surgeries compared to alternative devices (Product-Related Announcements).
  • Sectra expanded its pre-operative planning solution to include Smith+Nephew's 3D templates for orthopedic trauma. This enhances patient-specific treatments and operational efficiency in surgery (Client Announcements).
  • Recent evidence and market updates support wider adoption of the REGENETEN Bioinductive Implant for rotator cuff and extra-articular ligament repairs. Clinical studies show reduced re-tear rates and improved patient outcomes (Product-Related Announcements).
  • Smith+Nephew launched the CENTRIO Platelet-Rich-Plasma (PRP) System for chronic wound management. The system supports natural healing and is now available through a new distribution agreement in the United States (Product-Related Announcements).

Valuation Changes

  • The Consensus Analyst Price Target has risen slightly from £14.37 to £14.50, reflecting incremental upward adjustments in fair value.
  • The Discount Rate has decreased marginally, moving from 8.53% to 8.53%.
  • Revenue Growth projections have edged down slightly from 5.41% to 5.40%.
  • The Net Profit Margin has declined modestly from 13.23% to 13.22%.
  • The Future P/E Ratio has increased somewhat from 23.03x to 23.40x.

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Disclaimer

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