Smith & Nephew: Brean Capital raises Hip and Knee ests
Brean Capital raises their hip and knee estimates for SNN in the quarter as growth appears to have resumed for hips and knees following a light 1Q, which was hurt by pronounced seasonality. They now see SNN growing hips 3% (3% WW) versus their original estimates for flat revenue growth. As for knees, They now expect 9% US (6% WW) versus their original 4% (1% WW) growth projection. They note this increase in growth, however, is expected to be offset by weakness within the advanced wound care business. Maintains Hold, maintains rev ests but raises EPS. Firm notes the stock is pricing in a possible takeover offer from Stryker (SYK) at the end of the year.