Smith+Nephew cuts outlook, confirms failed merger talks with J&J's orthopaedics unit

Impact · against what's priced in

Smith+Nephew faces a double blow of lowered guidance and failed M&A talks, which will likely lead to immediate EPS revisions. For Johnson & Johnson, the failed merger is a negligible event as the market already values the company based on its current MedTech operational pace rather than an imminent divestiture or merger.

JNJ−0.05

Doesn't touch the price's assumptions

The price assumes

the current 6.0% to 6.6% growth trajectory