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Jefferies keeps buy on Smith & Nephew despite concerns over H2 growth and CFO departure

Market News
04 Sep 2026
Proactive Investors
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Neutral
Jefferies keeps buy on Smith & Nephew despite concerns over H2 growth and CFO departure

Jefferies maintains a 'buy' rating on Smith & Nephew with a 1,500p price target despite investor doubts about achieving 5.0%-5.5% organic sales growth in the second half of 2026. The company lowered its full-year sales growth guidance to 4% from 6%, with challenges including regulatory changes, tariff impacts, and the unexpected CFO departure. Activist shareholder Cevian holds over 14%, and strategic options like an orthopaedics sale or spin-off are being considered. A key upcoming event is the early-2027 trial readout for MediWound's EscharEx, which could impact Smith & Nephew's Santyl product.

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