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Demant’s Q3 sales were largely in line with the market’s expectations. Double-digit growth in Hearing Healthcare was partly offset by weaker Communications. The 2023 guidance was narrowed. While MedTechs in general remain in a tricky situation, hearing aids are better-placed to sustain the healthy recovery momentum. Throw in the targeted improvements plus the benefits of innovative offerings and Demant remains a quality name in an uncertain MedTech sector.
Companies: Demant A/S (DEMANT:CPH)Demant A/S (DEMANT:CSE)
AlphaValue
Demant reported strong Q2 sales numbers, with robust growth in Hearing Healthcare being somewhat offset by weaker Communications. More importantly, besides the strong performance in H1 23, the 2023 guidance was upgraded to reflect the improving demand for hearing aids. Overall, with the favourable market dynamics and improving balance sheet strength – which supports the scenario of further inorganic bets – we maintain our positive recommendation on Demant.
Demant released a good set of Q1 results. The healthy momentum in the hearing aids market (also acknowledged by other firms in AV coverage) along with more bolt-on acquisitions were a validation of the underlying sector opportunities. While weakness could continue to persist in Communications, this isn’t a big problem as it accounts for a fraction of total sales. Overall, supported by the improving market dynamics for hearing aids and a strong product portfolio, our positive recommendation is ma
Demant reported strong preliminary Q1 23 sales numbers. Growth was driven by Hearing Healthcare, although this was partly offset by weaker Communications. Notably, newer product launches along with recovering demand (especially in the US) were key catalysts. the 2023 guidance was upgraded. Overall, with the promising market dynamics and banking on further inorganic bets, the Danish firm’s re-rating momentum is here to stay.
Demant reported strong Q4 22 results. Growth was driven by Hearing Healthcare, but partly offset by weaker Communications. Notably, despite difficult market conditions, the firm managed to report healthy results/organic growth. Moreover, the firm announced the launch of a new flagship hearing aid – which could be the most-important re-rating catalyst for Demant. Overall, the stock is worth a go at current levels.
Demant reported soft Q3 results. A slowdown in the US private pay market with a resulting guidance downgrade plus a pause in the share buy-back program has spooked the markets – with the stock collapsing c.13% today. Communications’ sustained vulnerabilities were an added concern. While the management has implemented cost reduction initiatives there is no visibility on new products (a key catalyst) and, hence, Demant is one of the least preferred hearing aid stocks in our coverage.
Demant reported soft Q2 results. While, like Sonova, the management also downgraded is full-year outlook, the brewing slowdown in the US hearing aid markets is a concern for the Hearing Healthcare segment. The underlying issues for Communications are an added complication. While the stock has seen a substantial sell-off in recent months (including yesterday), buying into the dip warrants caution in that there are no near-term share price catalysts.
Demant has made decent start to the year, driven by an impressive performance in the Hearing Healthcare segment, although this was partly offset by weaker Communications, due to tough comps and supply chain challenges. Importantly, the group has maintained its full-year outlook, despite the ongoing geo-political crisis. While Q1 sales were largely in line, our estimates should reset lower to reflect the divestment of the Hearing Implants business at a lower price. Hence, our cautious stance on t
Demant has witnessed positive momentum/recovery across most Hearing Healthcare sub-segments. While the negative H2 performance in Communications was a drag on 2021 and is guided to continue in Q1 22, the overall performance recovery is expected to remain on track. Even though stiff competition and other challenges warrant some caution and, hence, no further performance upgrade, the stock is currently trading at attractive levels/multiples, given the sell-off in recent weeks (including the post r
So far in H2, Demant has witnessed positive momentum/recovery across most hearing-related sub-segments. Particularly, Oticon More was able to gain market share in the VA channel and posted strong growth in the NHS as well. Although EPOS remained under pressure. 2021 adjusted EBIT guidance was increased marginally while top-line growth guidance was maintained. As our estimates are already on the higher side, we don’t expect any major changes and our cautious recommendation should be maintained.
Demant’s management targets aggressive mid-to-long-term growth. Besides a recovery in Hearing Healthcare, to also benefit via the Oticon More launch, the growth prospects in Communications seem promising. Strong FY21 guidance was reinforced. As a result, our estimates should reset higher. However, considering that competition is head-on with Sonova’s Paradise and there could be some near-term business/margin challenges (as already guided for Communications), our cautious stance should be maintai
Despite the deceleration in communications, Demant reported a sales beat in H1, benefiting from the hearing aids market recovery, the robust traction for new products and reform-related tailwinds in France. Strong sales growth combined with cost savings led to significant margin expansion. Anticipating the release in pent-up demand, the FY21 outlook has been upgraded with hearing healthcare to lead the pack. However, communications is likely to shrink in H2 and continued investments into R&D and
Year-to-date, Demant’s organic revenue has grown faster than management’s expectations with strong demand for Oticon More and Philips HearLink leading to market share gains in Hearing Aids. Also, Hearing Care benefited from a continued market recovery and strong growth in Europe. Given the ongoing trend of vaccination, particularly in the US, management anticipates pent-up demand in H2 and thus full-year sales and profitability targets have been upgraded. Share buy-back amount has also been rais
Driven by the strong recovery in hearing healthcare market and robust demand for its communications solutions, Demant returned to growth in H2 20, though sales were below the normal level. Interestingly, strict cost management bolstered profitability as well. Assuming the hearing market normalises in H1 21, management has set ambitious but risky targets for FY21 – pent-up demand for hearing solutions and the recently-launched Oticon More should be the key growth contributors. The DKK2bn share bu
Demant has launched a new product – Oticon More comes with an industry-first in-built Deep Neural Network (deep/ machine learning) which improves audiology performance. This is a multi-brand launch, allowing Demant to target a wider patient base and ensuring strong sales momentum into 2021. Nonetheless, given the stiff competition within the hearing aids industry, the new product is priced only marginally higher than the previous device as management’s focus is on market share gain.
Companies: Demant A/S
Research Tree provides access to ongoing research coverage, media content and regulatory news on Demant A/S. We currently have 0 research reports from 3 professional analysts.
Companies: Warpaint London PLC
Shore Capital
Feature article: Steady as she goes, but could be better: A review of investment company liquidity since 2016 Liquidity is the lifeblood of equity markets. The measurement of liquid asset availability to a market or company is a way of gauging a market’s health. This article builds on our previous work, which analysed the liquidity data for non-financial trading companies, by applying the same analytical techniques to the investment companies (IC) space. We analyse liquidity for ICs as a whol
Companies: NBPE ICGT ARBB RECI CLIG HAT AVO VTA APAX
Hardman & Co
Avon Protection’s capital markets day highlighted its continued focus on medium-term margin expansion (targeting operating margin of 14–16%), concentrating on its core business of respirators and head protection. The unwinding of the armour business, alongside the consolidation of Team Wendy (acquired in H220) should enable Avon to benefit from rising global defence spending. Its strong relationship with the US DoD, and organic growth opportunities with recurring revenue from necessary product r
Companies: Avon Protection PLC
Edison
Companies: SCE HVO VLG
Cavendish
15th April 2024 * A corporate client of Hybridan LLP ** Arranged by type of listing and date of announcement *** Alphabetically arranged **** Potential means Intention to Float (ITF) has been announced Dish of the day Admissions: Delistings: What’s baking in the oven? ** Potential**** Initial Public Offerings: Reverse Takeovers: Change of Market: TheWorks (WRKS.L) a multi-channel value retailers of books, arts and crafts, stationery, toys and games, offering customers a differentiated propositio
Companies: GTC SAV FAB KRM BOOM
Hybridan
Companies: IGP RUA BOOM
17th April 2024 * A corporate client of Hybridan LLP ** Arranged by type of listing and date of announcement *** Alphabetically arranged **** Potential means Intention to Float (ITF) has been announced Dish of the day Admissions: Delistings: What’s baking in the oven? ** Potential**** Initial Public Offerings: Reverse Takeovers: 16 April 2024: Electric Guitar (ELEG.L) Concurrent with its Admission to trading on AIM, Electric Guitar is proposing to acquire the entire issued share capital of 3radi
Companies: ARS TIDE SCE SNX ECK CNS TST SPEC SSTY
The Hardman & Co Healthcare Index (HHI) has been running since 2009. Its main function is to highlight the attractions of life sciences investments over the long term. For the second year running, apart from global economic influences affecting world markets, performance in 2023 was dented by the capital-intensive nature of the sector. The HHI fell 3.7%, to 483.8, underperforming the main London markets – FTSE 100 (+3.8%) and FTSE All-Share (3.8%) but outperforming the FTSE AIM All-Share Index (
Companies: TXG NDVA TSVT BCOW Z29 TXG NCYT GNS SUN AMS OMG APH EKF EAH IMM AGL DEMG AGY TSTL IPO GDR ETX TRX HVO CTEC AVO OXB DEST VLG IXI VAL INDV AGR AVCT BAI 123F IMCR BCOW
TRX is focused on the development and commercialisation of two proprietary processing technologies for the repair of soft tissue (dCELL®) and bone (BioRinse®). It has a broad portfolio of products used in biosurgery, orthopaedics and dental markets. Investment in tissue processing, manufacturing capacity and strong commercial partners, together with its “4S” strategy, has generated six consecutive reporting periods of strong growth, with TRX turning EBITDA-positive in 2023. Further growth in 202
Companies: Tissue Regenix Group plc
Cambridge Nutritional Sciences (CNS) has published its H1 2024 results to end September 2023. Group revenues grew 44% to £4.9m and gross profits increased by 63% to £3.1m, with the company benefitting from newfound operational efficiencies. With its now streamlined strategy focussing on the core Health & Nutrition business and the initial signs of an encouraging uptick in sales momentum, we believe the company is well positioned for growth that will help create future value for shareholders. We
Companies: Cambridge Nutritional Sciences PLC
Companies: BILN IGP RBN SBTX
Venture Life has reported FY23 results to December 2023, following the February trading update. Revenues grew 17% in the year to £51.4m (our est. £50.7m) and adjusted EBITDA was £11.6m (our est. £11.6m). Cash conversion was 85%, generating £9.8m of cash from operations. Cash generation and no M&A in 2023 allowed the company to de-lever, closing FY23 with net debt to adjusted EBITDA at 1.3x. Management have focused on growth with three therapy areas generating double-digit revenue growth and onli
Companies: Venture Life Group Plc
Creo Medical has released a trading update for FY23, an active year for the company, with progress made across all business segments. Traction improved in H223, following Speedboat Inject’s European clearance for upper gastrointestinal (GI) procedures and the accelerated approval and launch of Creo’s slimmest electrosurgical device, Speedboat UltraSlim. Top-line growth was supported by continued streamlining of the cost structure, resulting in a better-than-expected underlying EBITDA loss (impro
Companies: Creo Medical Group Plc
Zoetis delivered a decent set of results for the last quarter of 2022 meeting analyst expectations as well as the high end of its management guidance. Despite the economic challenges, ongoing pandemic recovery, and the political unpredictability brought on by the war in Ukraine, they delivered operational growth for the year in each of their top 13 markets. The company's unique companion animal portfolio drove its 8% operational revenue increase for the year, growing 14% operationally. In compar
Companies: Zoetis (ZTS:NYSE)Zoetis, Inc. Class A (ZTS:NYS)
Baptista Research
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