Smith & Nephew PLC (LSE:SN) is in line to benefit from surgical trends flagged by a leading orthopaedic surgeon, analysts at Citi said.
The bank hosted a call with Dr Samir Mehta, associate professor of orthopaedic surgery and chief of the Orthopedic Trauma and Fracture Care division at the Hospital of the University of Pennsylvania.
Dr Mehta "struck a constructive tone on volumes", noting mid-single-digit to high-single-digit annual growth in his practice and hospital so far in 2023.
This was ahead of internal plans, the analysts noted, and driven by a combination of robust demand, with waiting lists above pre-Covid levels, and easing staffing headwinds.
"While staffing remains an issue, Dr Mehta noted a significant improvement versus the October/November 2022 levels, with further easing likely in coming months and quarters."
As far as competitive dynamics are concerned, the professor "largely expects market shares across manufacturers in his practice to remain stable", though stressed "the importance of cementless knee offering given continued shift to robotics".
Citi said: "We see his commentary as supportive of our Smith & Nephew thesis, and reiterate Buy."