JPM puts Carl Zeiss on negative Catalyst Watch on downside risks to earnings
** J.P.Morgan places Carl Zeiss Meditec AFXG.DE on negative Catalyst Watch, citing downside risks to 2024 guidance and 2025 consensus
** The German medical technology firm's stock is down 2.85%
** JPM says a cut to 2024 outlook (potentially at Q3) is "well flagged" although the magnitude of guidance downgrade remains the key uncertainty
** It predicts 2024 adjusted EBIT and EPS to be 9% and 10% below consensus respectively, adding the risks to 2025 numbers are "underappreciated"
** Consensus foresees EPS growth of 26% for 2025 based on 2024 earnings, which JPM says "are too high"
** The brokerage points to an earnings downgrade cycle through 2023 and 2024, flagging further downside risk to estimates
** Although the stock is traded broadly in-line with ophthalmology peers, it is located in the bottom quartile in terms of earnings growth, it adds
** Recent outperformance from peers may signal market share losses for Carl Zeiss, it says
Reporting by Amir Orusov
Related Assets
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
