Tuesday, 25 June 2024 Reading time : 3 minutes

Straumann shares have been badly hit: since the beginning of the year, the dental implant specialist's shares have lost almost 20% and are currently trading at around CHF 109.00. This puts them well behind the Swiss market, which has gained more than 10% over the same period, as measured by the SPI. The downturn was triggered by the first quarter earnings, which saw the shares lose almost 12% in a single day. At first glance, the figures did not look too bad. The group increased its sales by around 15% year-on-year, beating analyst estimates*. Straumann also confirmed its outlook for the full year. 

However, the medtech company's business is not running smoothly in all areas. As Straumann notes in its quarterly report, growth dynamics vary considerably from region to region. In fact, sales growth in the company's two main markets, Europe and North America, has slowed compared to the same period last year. In contrast, sales in the Asia-Pacific region increased significantly. «China stood out with exceptional organic growth, driven by continued strong momentum and a low comparative base,» the quarterly report said. Straumann benefited from a catch-up effect as China suffered from pandemic-related restrictions in the first quarter 2023, which led to the postponement of implant treatments. 

The question now is how business activity will stabilise in the individual regions and whether the strong performance in China is sustainable. Stock markets currently seem to have doubts about the company's long-term growth prospects. Investors will learn more in mid-August when Straumann publishes its next set of figures.

Investment idea
The Barrier Reverse Convertible on Straumann is suitable for investors who expect the share price to move sideways. The product has a barrier of 76% and pays a guaranteed coupon of 8% per year.
Termsheet (Valor: 135803523)

*according to Bloomberg, consolidated estimate based on analyst expectations available to Bloomberg

 

Disclaimer
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