Smith & Nephew Shares: Goldman Sachs Trims Target But Holds Buy Rating Despite Growth Concerns

Goldman Sachs has lowered its price target on medical technology giant Smith & Nephew (LSE: SN.) to 1,550p from 1,700p, while reaffirming its Buy rating on the stock, even as near-term headwinds weigh on the outlook.

Analyst Richard Felton flagged “moderate downside risk” to the company’s fiscal 2026 growth estimates, pointing to softer-than-expected momentum in the first quarter.

Despite the cut, Goldman maintains that Smith & Nephew has a credible path to stronger growth momentum heading into fiscal 2027, suggesting the investment thesis remains intact over a longer time horizon.

The note adds to various price target reductions from other analysts following the company’s Q1 trading update in early May, when reported underlying revenue growth of 3.1% fell short of the consensus expectation.

Bernstein trimmed its target to $31.85 from $36.20, maintaining a Market Perform rating, while Canaccord cut to $30 from $32 with a Hold, citing compression across the peer group.

Barclays struck a slightly more constructive tone, modestly lifting its target to 1,350p from 1,300p, though it kept an Equal Weight rating.

Shares currently trade around 1,138p, down 7.7% for the year-to-date. Nevertheless, the stock remains below Goldman’s revised 1,550p target, implying potential upside of around 36% from current levels.