Bernstein names Sonova, Alcon as top European medtech picks for H2

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Bernstein has named Sonova as its short-term top pick and Alcon as its preferred long-term idea in a new H2 playbook for European medtech, assigning both "outperform" ratings with price targets of CHF 275 and CHF 76.15, respectively. Sonova, the world's No. 1 player in the $7.7 billion hearing aid wholesale market with roughly a 25% unit share, is expected to benefit from a multi-pronged growth setup into its H1 2026/27E results in November, with Bernstein forecasting H1 wholesale organic growth of 10.1% versus consensus at 8% and Group organic growth of 6.5% versus consensus of 4.9%. The bull case rests on continued strength from the EON Sphere launch, further share gains at Costco, where the Infinio-based device only entered the channel in March 2026, and another seven months of tailwind from Virto R hearing aid sales, plus a sharp H2 improvement in the Cochlear Implant business and accelerating M&A contribution in Retail as rivals Demant and Amplifon remain financially constrained. Bernstein's core EBIT estimates sit 5-8% above consensus across 2026/27E-2028/29E. On Alcon, the dominant ophthalmology player holding #1 or #2 positions across most of its sub-markets, Bernstein argues investor sentiment on the intraocular lens and consumables businesses has become "overly negative" and that the pressure is "largely transitory," expecting implantables growth to accelerate to 4% in 2027. Bernstein's constant-currency revenue growth estimates run 38-112 bps above consensus for 2026E-2028E, with core EPS estimates 1-9% higher, and at roughly 17x NTM P/E it sees an attractive entry point into what it calls a "multi-year compounding business."

Impact on assets 5

Aging Population▲
Alcon AG
ALC
▲ PositiveCapitalrelevance

Bernstein names Alcon its preferred long-term European medtech pick with an outperform rating and CHF 76.15 price target, arguing negative sentiment is overdone.

Health Care▲
Sonova H Ag
SOON
▲ PositiveCapitalrelevance

Bernstein names Sonova its short-term top pick with an outperform rating and CHF 275 price target, citing above-consensus EBIT estimates.

Consumer Staples▲

Theme Impact 2

Off-coverage companies 1

Bernstein (Societe Generale / AllianceBernstein JV)i
Private± Mixedrelevance

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Goldman Sachs Upgrades Sonova to Buy, Shares Hit 16-Month High

Goldman Sachs upgraded Sonova Holding to buy from neutral and raised its price target to CHF315 from CHF230, sending the hearing-aid maker's shares to a 16-month high. The stock rose around 0.5% to its highest level since June 11, 2025, outperforming a broader Swiss market that saw the SMI fall about 0.8% on Thursday. Goldman Sachs said Sonova is well positioned to outperform the overall hearing-aid market, citing product innovation, opportunities to gain market share in Asia and improving industry fundamentals. The broker expects the company to deliver around 9% constant-currency revenue growth in the first half of fiscal 2027, well above Visible Alpha consensus of 6.2%, which it sees as a potential catalyst for the shares. Goldman now expects Sonova to reach the upper end of its FY27 guidance, forecasting 7.8% constant-currency revenue growth versus 6.6% consensus, while adjusted EBIT growth including FX is seen at 12.6% versus 6.5% consensus, and it raised FY27-29 revenue estimates by 4%-7% and adjusted EBIT and EPS estimates by 7%-10%. The next major catalyst is Sonova's November 12 first-half FY27 results, where Goldman expects the company's stronger-than-consensus growth to become more visible.
SOON.SW ▲GS ▲
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Aging Population › Hearing (aids & cochlear implants) ▲Capital
Aging Population › Hearing / Vision / Dental ▲Capital
SOON.SW · Capital · Positive Goldman Sachs upgraded Sonova to buy and lifted its price target to CHF315 from CHF230, sending shares to a 16-month high
GS · Capital · Positive Goldman Sachs upgraded Sonova to buy and raised its price target, a positive analyst action for the broker's research franchise
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