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Investing.com -- Barclays has turned more cautious on European medical technology stocks, citing rising U.S. market pressures. In its latest survey of 150 independent U.S. audiologists, the bank flagged worsening trends in patient deferrals and downtrading, adding to concerns about recovery prospects.
The survey showed 48% of respondents expect deferrals in the next six months, up from 40% in the prior period. Downtrading is also expected to rise to 45%, from 42%.
As a result, Barclays downgraded Sonova Holding AG (OTC:SONVY) to “underweight” from “equal weight” and cut its price target to CHF 225 from CHF 275.
The company’s Sphere product, once seen as a strong differentiator, has lost momentum.
Only 25% of respondents now view it as “significantly better” than peers, down from 48% in November 2024.
Phonak, Sonova’s lead brand, is expected to lose 130 basis points of market share in the next six months after gaining 210 basis points previously.
Barclays analysts cited competitive launches, reliability concerns, and pricing pressure as key risks to Sonova’s guidance.
The company’s growth assumptions in U.S. Veterans Affairs and Costco (NASDAQ:COST) channels appear ambitious, with the brokerage projecting its FY26/27 earnings per share 4% below consensus.
Demant A/S, by contrast, was upgraded to “equal weight” from “underweight,” with a price target raised to DKK 285 from DKK 220.
The company’s conservative guidance of +1% to +5% organic growth was viewed as more realistic than Sonova’s +5% to +9%.
Demant is expected to gain 70 basis points of market share, rebounding from a 180 basis point loss.
Analysts noted improved sentiment around its re-entry into managed care contracts and an anticipated product launch in the fall.
GN Store Nord remained rated “equal weight.” Despite launching the ReSound Vivia platform in February, audiologists expect the brand’s share to remain stable.
Vivia received a 61% combined “significantly” or “moderately better” rating but only 14% rated it as significantly better.
Amplifon (BIT:AMPF) is Barclays’ only “overweight”-rated stock in the sector. The brokerage continues to favor the retailer in a market where manufacturers face volume pressure, pricing sensitivity, and rising cost inflation.
Surveyed audiologists reported an 8% quarter-on-quarter rise in U.S. hearing test volumes in Q2, with cost inflation expected to reach 9%, up from 7% over the past year.