RBC Capital Raises Price Target on Smith & Nephew (SNN) Ahead of Capital Markets Day
Smith & Nephew plc (NYSE:SNN) is included among the 11 Best FTSE Dividend Stocks to Buy Right Now.
Smith & Nephew plc (NYSE:SNN), a global medical technology company based in the UK, offers a wide range of products and services within the medical equipment industry to serve its customers’ needs.
On October 20, RBC Capital raised its price target on Smith & Nephew plc (NYSE:SNN) to GBP1,700 from GBP 1,400, while maintaining an Outperform rating on the medical technology company.
The price target revision was made ahead of the company’s Capital Markets Day (CMD) in December, where RBC expects the company to outline guidance of 5–6% revenue compound annual growth rate (CAGR) and 2–3 percentage points of EBIT margin expansion through 2028.
RBC noted that such guidance would likely be viewed favorably by investors, as it suggests modest upside to current consensus estimates at the midpoint. The firm remains “cautiously optimistic” about Smith & Nephew plc (NYSE:SNN)’s upcoming third-quarter results, which are expected to be released in the first week of November. The higher price target reflects RBC’s updated valuation model, while the firm continues to maintain its Outperform rating on SNN.
Smith & Nephew plc (NYSE:SNN) maintains a progressive dividend policy and has consistently paid dividends to shareholders since 1937, which makes it one of the best FTSE dividend stocks. The stock has a dividend yield of 2.11%, as of October 29.
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