Key insights
- Bernstein has identified Sonova as a top short-term European medtech pick and Alcon as a preferred long-term idea, both with "outperform" ratings. Sonova is expected to benefit from strong wholesale organic growth driven by product launches and market share gains, with Bernstein's EBIT estimates exceeding consensus. Alcon, despite negative sentiment on its IOL and consumables businesses, is seen as a long-term compounder with potential for share defense and sequential gains from new product
Investing.com -- European medtech has had another bruising year, with only Demant and Sonova outperforming the Stoxx 600 in 2026 as the sector’s once-premium valuation continues to de-rate.
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But Bernstein is steering investors toward two standout names as she rolls out her H2 playbook: Sonova as the short-term top pick and Alcon as the preferred long-term idea, with "outperform" ratings and price targets of CHF 275 and CHF 76.15, respectively.
Sonova, the world’s No. 1 player in the $7.7 billion hearing aid wholesale market with roughly a 25% unit share, is positioned to benefit from a multi-pronged growth setup into its H1 2026/27E results in November.
Bernstein forecasts H1 wholesale organic growth of 10.1% versus consensus at 8%, and Group organic growth of 6.5% versus consensus of 4.9%.
The bull case rests on continued strength from the EON Sphere launch, further share gains at Costco, where the Infinio-based device only entered the channel in March 2026, and another seven months of tailwind from Virto R hearing aid sales.
Bernstein also expects a sharp H2 improvement in the Cochlear Implant business, which has been a drag on Group performance, plus accelerating M&A contribution in Retail as rivals Demant and Amplifon remain financially constrained following their own acquisitions. Bernstein’s core EBIT estimates sit 5-8% above consensus across 2026/27E-2028/29E.
Alcon, the dominant ophthalmology player holding #1 or #2 positions across most of its sub-markets, is Bernstein’s long-term compounder call.
The broker argues investor sentiment on Alcon’s intraocular lens (IOL) and consumables businesses has become "overly negative" and that the pressure is "largely transitory."
Alcon has already shown it can defend share, PanOptix Pro drove sequential gains following its Q2 2025 launch, and Bernstein expects a similar pattern with Vivity Pro in 2027, even as J&J’s PureSee launch weighs on the U.S. market through Q3 and Q4 2026E. Implantables growth is expected to accelerate to 4% in 2027.
Bernstein’s constant-currency revenue growth estimates run 38-112 bps above consensus for 2026E-2028E, with core EPS estimates 1-9% higher. At roughly 17x NTM P/E, Bernstein sees an attractive entry point into what it calls a "multi-year compounding business."
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