SNN Stock Gets Fresh Upgrade: Analysts See Significant Upside From Current Levels

RBC Capital Markets has reaffirmed its bullish stance on Smith & Nephew plc (NYSE: SNN) with an Outperform rating, signaling confidence in the medical device company’s near-term performance. The endorsement comes as consensus price targets suggest meaningful appreciation potential for investors currently holding or considering entry.

Strong Upside Thesis From Wall Street

The consensus price target for SNN currently stands at $38.96 per share, which implies a 16.38% gain from the stock’s recent closing price of $33.48. This projection reflects a wide range of analyst opinions, with forecasts spanning from a conservative $31.73 to an ambitious $55.54, indicating both bullish and cautious perspectives within the investment community.

On the operational front, Smith & Nephew plc is projected to generate $5,733 million in annual revenue, though this represents a marginal 3.55% contraction compared to prior periods. The company is expected to deliver non-GAAP earnings per share of 1.07, highlighting its operational efficiency despite revenue headwinds.

Institutional Appetite Shows Selective Moves

The institutional investor base for SNN comprises 300 funds and institutions, a notable expansion of 22 positions (or 7.91%) within the recent quarter. However, aggregate institutional ownership patterns reveal a nuanced picture. The average portfolio allocation to SNN across all funds stands at 0.18%, marking a 13.90% increase in relative weighting.

Total institutional share count decreased by 7.79% to 35,249,000 shares over the three-month period, suggesting some net selling despite the increase in fund count. This divergence points to selective accumulation by new entrants offset by trimming from existing holders.

Major Shareholders Navigate Mixed Conviction

Bank of Montreal maintains a 3,284,000-share position in SNN, down 4.46% from its previous disclosure of 3,430,000 shares. The firm aggressively reduced its portfolio concentration in the stock by 79.66% over the quarter, signaling a shift away from SNN as a core holding.

River Road Asset Management similarly pared back, holding 2,785,000 shares versus the prior 3,180,000—a 14.19% reduction. The firm’s portfolio allocation to SNN declined 8.22% during the period, indicating modest profit-taking.

Scharf Investments maintains a 2,029,000-share stake, slightly below the previous 2,084,000 shares (down 2.68%), though the firm marginally increased its SNN allocation by 0.71%, suggesting selective confidence amid broader market moves.

Goldman Sachs Group cut its position to 1,953,000 shares from 2,189,000 shares, representing a 12.10% reduction. The investment bank notably decreased its SNN portfolio weight by 77.68% over the quarter, reflecting material de-risking.

Brandes Investment Partners holds 1,250,000 shares, down from 1,604,000 previously (28.33% decline), with portfolio allocation sliding 37.46%—among the most aggressive reductions among major shareholders.

Options Market Sends Bullish Signal

The put/call ratio for SNN stands at 0.14, a notably compressed level that underscores bullish sentiment in derivative markets. Low put/call ratios typically indicate that call buyers (betting on price appreciation) substantially outnumber put buyers (betting on declines), reflecting constructive positioning ahead.

The combination of analyst upgrades, selective institutional repositioning, and bullish options skew suggests that Smith & Nephew plc remains an attractive entry point for growth-oriented investors, though the mixed institutional flows warrant careful monitoring of execution metrics.