MARKET TALK: Jefferies Initiates Smith & Nephew At Buy

30th Jun 2010 07:43

0643 GMT [Dow Jones] Jefferies initiates coverage of Smith & Nephew (SN.LN) at buy with 790p price target. Sees significant re-rating in the orthopedics industry and says the company is best placed for this. Says its valuation is among the most attractive in the sector and a modest acceleration in growth coupled with margin improvements should be a catalyst for a re-rating. Also notes the company's diversified revenue stream. Says the main contribution to Smith & Nephew's growth will come from endoscopy and advanced wound management, leading to 7% revenue growth in '11 versus 2% in '09. Shares closed Tuesday at 634.5p. ([email protected]) Contact us in London. +44-20-7842-9464 [email protected] (END) Dow Jones Newswires June 30, 2010 02:43 ET (06:43 GMT)