Buy Signal on Carl Zeiss Medical (AFX-DE)
Carl Zeiss is a €9.1 bn market cap and specialized in ophthalmological diagnostic systems and equipment. In addition, the group manufactures and sells microsurgical visualization systems and ophthalmic surgery equipment. Revenue is made of 2 segments : 1/ ophthalmic diagnostic systems and equipment (73% of sales) including slit lamps, corneal topography systems, retinal imaging systems, keratometers, pupillometers, etc. In addition, the group offers optical products (magnifying glasses, telescopic glasses, monocular telescopes, spectacle lenses, etc.) and ophthalmic surgery equipment (refractive surgery systems, ophthalmic lasers, operating microscopes, intraocular lenses, etc. ); and 2/ microsurgical visualization systems (27% of sales) intended for the ENT, spinal surgery, neurosurgery, dental surgery, plastic surgery, etc.
The revenue is mainly achieved in Europe (60%) and United States (32%) as well as Japan (8%).
Carl Zeiss Meditec is a defensive growth company with potential to profit from an increasing aging population. The Refractive Laser business continue to develop nicely, as well as Microsurgery and the company’s strong balance sheet allows it to grow/aqcuire technologies by acquisitions.
Short term catalyst: Refractive laser strong momentum, acquisitions.
This signal looks consistent with the strong momentum on Medtechs