Smith & Nephew Price Target Cut as Berenberg Notes 'Disappointing' H1 Results

05:35 AM EDT, 08/14/2026 (MT Newswires) -- Berenberg maintained Smith & Nephew's (SN.L) hold rating and trimmed its price target as analysts took note of the medical technology company's "disappointing" first-half results. Alongside the results, Smith & Nephew downgraded its annual underlying revenue growth outlook for 2026 to 4% from the previously expected 6%. In a Friday note, the research firm attributed the downgrade to the company's "weak quarter" amid falling growth in its hip and knee implant line, pressure on advanced wound management from reimbursement changes affecting skin substitutes, and a "soft quarter" for Santyl ointment sales. "Overall, there was little in the results to encourage us that the company's historic issues have been fixed and we have some concerns around the company's ability to deliver on its full-year guidance," Berenberg said. As a result, Berenberg reduced its sales and EPS projections for 2026 through 2028, with EBIT forecasts also revised across the three-year period. Meanwhile, the price target on the stock was reduced to 12.50 pounds sterling from 13 pounds. "While S&N continues to screen cheaply on 9.5x 2027E EV/EBITDA, the risk of further earnings downgrades leaves us cautious," the note said.