On Wednesday, Morgan Stanley resumed coverage on Medacta International (MOVE:SW) shares, a Swiss medical device company, maintaining an Equal-weight rating on the stock. The firm also raised the price target to CHF 134.00 from CHF 130.00.
Medacta's shares are currently trading at 30 times price-to-earnings (P/E) and 15 times earnings before interest, taxes, depreciation, and amortization (EBITDA) based on Morgan Stanley's 2025 estimates.
These metrics are slightly below the five-year average of approximately 32 times P/E and 17 times EBITDA, and above the initial public offering (IPO) valuation of about 26 times P/E and 15 times EBITDA.
According to the firm's analysis, Medacta's stock is trading at a 1.5 times multiple relative to the European MSCI index, consistent with its five-year average. When compared to Swiss Medtech peers, including Alcon (NYSE:ALC), Straumann (STMN), Tecan (TECN), and Sonova (SOON), Medacta's shares are at a 12% premium based on P/E at 28 times but show a 15% discount on EBITDA at 18 times.
Morgan Stanley highlighted Medacta's earnings per share (EPS) growth as best-in-class for European MedTech, with growth in the high teens. However, the firm has below-consensus margin expansion forecasts and anticipates a possible recalibration following the first-half results and the Capital Markets Day. Consequently, the firm has decided to maintain an Equal-weight rating on the stock for the time being.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.