Smith & Nephew: Sluggish Growth And Shifting Outlook Now Make It Less Attractive (Rating Downgrade)

Smith & Nephew faces credibility challenges after a profit warning and lowered guidance, despite recent share price gains. SNN cut the full-year underlying revenue growth forecast to 3% and halved expected trading profit growth to around 4%, citing US Orthopaedics weakness. All three business divisions showed year-to-date revenue growth, with Sports Medicine & ENT delivering double-digit gains, but US Hips and Knees remain soft.