Earlier this week, Bank of America put in a Buy rating on the FTSE 100 medical firm Smith & Nephew (LSE: SN.). The vote of confidence was further established by an Outperform rating put in the following day by fellow broker Bernstein.
So what’s prompted this renewed faith in the medical technology company — and should I consider buying the shares now?
Troubled times
I’ve considered Smith & Nephew shares several times over the past year. However, lingering issues at the company have stopped me just short of buying. The shares are down 40% over the past five years, hitting a low of £8.96 last October.
It’s a disappointing outlook for a stock that gained almost 300% in the decade prior to 2020.
During these troubled times, the firm’s gone through no less than three CEOs, due in part to salary disagreements. Most recently, the board narrowly approved a 30% pay rise for CEO Deepak Nath — but not without…
