Citi has reiterated its buy rating on Smith & Nephew PLC (LSE:SN) following recent meetings with the company’s CEO and CFO.
The bank highlights a constructive tone around the business despite the decision not to upgrade full-year guidance, citing global uncertainties and tough fourth-quarter comparisons.
Citi notes encouraging momentum in the US orthopaedics market, with hip replacements outperforming and knees slightly behind, but the company aims to grow in line with the market by year-end.
Sports and Wound care divisions are also growing well, particularly outside China, although challenges are expected in ear, nose and throat treatments and skin substitutes in 2026.
Citi points out that Smith & Nephew is focusing on growing its non-orthopaedics businesses faster, both organically and through smaller acquisitions, and sees no plan to divest its orthopaedics segment.
In afternoon trading, the shares were flat at 1,342p.