LONDON (ShareCast) - (Sharecast News) - Analysts at Citi downgraded their view for shares of medical device maker Smith&Nephew to 'neutral' in anticipation of six to 18 months of difficult trading in the wake of the Covid-19 pandemic.
Among the expected headwinds from the virus was the expected deferment of surgeries as hospitals shifted resources to combating the virus.

There was also limited visibility on the pace of recovery for the same.

"Our calls with US orthopedic surgeons suggest that the catch-up in deferred procedures will likely take longer than the market expects," Citi said.

Furthermore, delayed product launches and reduced commercial activities meant that the company's turnaround was likely to take longer, which combined with the recent rally in the shares meant the risk-reward on offer was now more balanced.

On the back of all of the above, the analysts cut their estimates for the outfit's earnings per share by 15-22%, leading to a reduction in their target price from 2250.0p to 1,700.0p.

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