The market’s mood has certainly improved where Siemens Healthineers (OTCPK:SMMNY) (OTC:SEMHF) is concerned. Whether that’s due to a strong fiscal first quarter result that showed a good recovery in imaging, the fact that the Varian (VAR) financing is complete and on better-than-expected terms, or just improving sentiment, I don’t think shareholders are going to look that particular gift horse in the mouth.
Healthineers has done better than I’d expected in the relatively short time since my last update. Up about 25%, Healthineers has been outperformed very slightly by Philips (PHG) (on which I’ve been bullish), but has outperformed other med-techs like Abbott (ABT) and Intuitive Surgical (ISRG). Keep in mind, though, that the shares underperformed after the Varian announcement, so on a one-year comparison, Healthineers is still the laggard of that group (though still up more than 35%).
I still like Siemens Healthineers as a business, and I think the acquisition of Varian will ultimately be looked at as a good move. I’m also bullish on some of the company’s own organic growth initiatives, including new offerings in imaging and diagnostics. Valuation isn’t great right now, but it’s not much worse than other quality med-techs, and I can see a sound argument for holding, particularly with an improving capital equipment environment and possible upside from COVID-19 antigen testing.
Read more here:
Siemens Healthineers Offers More Than Just Acquired Growth And Synergy Opportunities
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