Smith & Nephew stock faces analyst downgrades after weak growth

Published on 09/29/2026 at 09:51 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

Smith & Nephew stock posted USD 3.10 billion in first-half revenue, while Morgan Stanley cut its target to GBP 11.58. The LSE reference price was GBp 1,027.50.

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Smith & Nephew stock was last listed at GBp 1,027.50 on the London Stock Exchange on September 18, 2026, while recent analyst actions have highlighted slower growth expectations. The company reported USD 3.10 billion in first-half 2026 revenue and underlying growth of 2.3 percent for the six months ended June 27, 2026.

Analysts lower their targets

According to Investing.com on September 2, 2026, Morgan Stanley downgraded Smith & Nephew from Overweight to Equalweight and reduced its price target from GBP 13.04 to GBP 11.58. The bank cited challenged growth across orthopaedics, wound biologics and China.

The same Investing.com report said JPMorgan cut its rating from Overweight to Neutral and lowered its price target from GBP 14.38 to GBP 12.90, pointing to a slowdown in the market.

Revenue growth trails profit growth

For the quarter ended June 27, 2026, revenue reached USD 1.60 billion and underlying growth was 1.6 percent, according to The Globe and Mail. Operating profit rose 4.3 percent to USD 448 million, while trading profit increased 8.1 percent and adjusted earnings per share rose 11 percent.

The contrast matters for investors: profit measures improved faster than the top line, but the revenue comparison remains modest. Smith & Nephew's portfolio spans orthopaedics, sports medicine and advanced wound management, leaving execution in each division central to the investment case.

Smith & Nephew stock stays below targets

Smith & Nephew's LSE reference price was GBp 1,027.50 on September 18, 2026. Morgan Stanley's GBP 11.58 target and JPMorgan's GBP 12.90 target both remain key benchmarks as the market weighs first-half revenue growth against stronger profit performance.