Smith & Nephew Improving But Shares Overvalued

We've increased our valuation for the medical devices manufacturer following strong results, but the shares are still overpriced

Holly Cook 26 February, 2015 | 1:43PM

Morningstar analysts have raised their valuation of Smith & Nephew (SN.) shares following  respectable set of fourth-quarter results this week, showing the firm continues to make progress in improving profitability. However, trading at 1,174p at the time of writing, shares in the medical devices manufacturer continue to be overvalued by the market compared to our increased fair value estimate of 905 pence per share, or $28 for the ADRs.

Below is a synopsis from Morningstar analyst Debbie Wang's report on S&N.

Bulls Say

Smith & Nephew participates in the fast-growing sports medicine arena thanks to its extensive arthroscopy portfolio.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
Smith & Nephew PLC1,542.50 GBX-0.45

About Author

Holly Cook

Holly Cook  is Manager, Morningstar EMEA Websites

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