RBC Capital starts Smith & Nephew at 'outperform'

RBC Capital Markets initiated coverage of medical products manufacturer Smith & Nephew at ‘outperform’ on Wednesday with a 1,700p price target.

"The market is not pricing in the potential acceleration in both revenue growth and margins from the company's strong positioning in high-growth Sports Medicine and ASCs, as well as its differentiated CORI surgical robot and new cementless knee portfolio, in our view, as well as its operational improvement programme," RBC said.

"This provides an opportunity to build a position in a major med-tech company at a historically low entry point."

At 1130 GMT, the shares were up 3.1% at 1,242.50p.