RBC Capital downgrades Sonova stock rating on valuation concerns

RBC Capital has lowered Sonova Holding AG's stock rating to Sector Perform from Outperform, while raising its price target to CHF283.00 from CHF250.00. Analyst Charles Weston explained that Sonova shares have surged almost 70% over the past six months, driven by anticipated revenue growth from a recovering market and new product launches.

The stock, currently trading at $71, is nearing its 52-week high of $71.91 and has delivered a 53% return over the same period. Weston highlighted that the RSI suggests overbought territory and a P/E ratio of 32.45. The firm has rolled forward its price target to CHF283 at the end of 2027, urging caution ahead of the upcoming H1 F2026/27 results.

Weston emphasized that qualitative factors, such as customer and audiologist feedback, Costco and VA traction, and potential stocking dynamics, will be crucial. He also noted the importance of any commentary on competitor product launches and Integro timing. Sonova's current fiscal year guidance stands at 5-8% constant currency sales growth and 7-10% core EBIT growth.

Recent analyst updates include Goldman Sachs upgrading Sonova to Buy with a CHF315 price target, anticipating above-market growth in the first half of fiscal 2027; Deutsche Bank maintaining a Hold rating but increasing its price target to CHF253, driven by an 8.8% forecasted constant-currency sales growth; and UBS downgrading Sonova to Neutral with a CHF293 price target, citing strong fundamentals but noting declines in hearing implants.