HALISTER1: Carl Zeiss Meditec Has Upside for Microsurgery, M&A: HSBC

Carl Zeiss Meditec Has Upside for Microsurgery, M&A: HSBC

(Bloomberg) -- Carl Zeiss Meditec has upside potential in its microsurgery products and cash position for possible M&A, which are not priced in, HSBC says.
  • Upgrades to buy vs hold; lifts PT to EU40 vs EU36
  • Sees M&A potential in IOL lenses in the U.S. to gain faster market access
    • Notes most interesting asset in the market is Valeant’s Bausch & Lomb, though a $2b-$2.5b investment would be huge for Carl Zeiss and more on the aggressive side, would require a combination of debt and equity raising
  • Says market share in laser technology will drive top-line growth
DATA
  • Stock has risen 3.5% month-to-date vs a 2.4% rise in the Stoxx 600 Health Care index; is up 17% YTD vs a 12% fall in the SXDP index
  • Of 14 analyst ratings, 6 are buy, 6 hold, 2 sell, with an average PT of EU35, implying ~5% upside
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

Tickers
AFX GR (Carl Zeiss Meditec AG)

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