MARKET TALK: Smith & Nephew Lower; JPMorgan Forecast Cut Cited

2nd Jul 2010 15:24

1424 GMT [Dow Jones] Smith & Nephew (SN.LN) shares -5.1% at 584p, with traders citing a note by JPMorgan Thursday in which the brokerage downgrades its forecasts for the company due to currency headwinds. JPM cut its '10 EPS estimate to $0.66 from $0.70 and its '11 EPS estimate to $0.77 from $0.79 to take account of the strong US dollar. "We now expect the company to face a 1% currency headwind for FY'10 vs a 1% tailwind previously." JPMorgan notes its revenue forecasts are now at the bottom end of the market range. "Some parts of the market remain too bullish on the medium-term outlook for recon and trauma growth." Neutral rating. ([email protected]) Contact us in London. +44-20-7842-9464 [email protected] (END) Dow Jones Newswires July 02, 2010 10:24 ET (14:24 GMT)