Straumann Earnings: Strong Demand Amid China Uncertainty and Macro Pressures Carries Top Line

Narrow-moat Straumann reported healthy second-quarter earnings that were in line with our expectations. Total sales were up 5.4% year over year despite unfavorable currency and global inflation effects (organic growth was 11.7%). Patient flow remains favorable in most countries, and all four regions reported solid performance. Straumann continues to win shares in certain markets and bolster its intangible assets thanks to its portfolio of market-leading brands. After updating our full-year assumptions and adjusting for the time value of money, we raise our fair value estimate to CHF 94 from CHF 90.