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29 Oct 2015
Smith & Nephew (SN) shareholders are legging it en masse this morning despite Q3 results showing underlying revenues +4% and management maintaining FY 2015 guidance. Investors are clearly unprepared to shoulder the combined news of a $275m robotics acquisition (which always carries risk), reported revenues -4% due on account of strong currency headwinds as well as slower sales in China taking the lustre off decent growth in emerging markets. Add to this management comments about a still challenging European market backdrop and the knee-jerk reaction is to accelerate the summer trend of falling highs towards the summer lows. Sentiment could do with its own replacement.
Mike van Dulken, Head of Research
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