Deutsche Bank analysts have identified signs of stabilization in Europe’s MedTech and Life Sciences sectors following the second-quarter earnings season, though they remain cautious about the sustainability of the rebound.
The bank’s assessment highlights that, despite mixed results, positive surprises slightly outnumbered negative ones during the reporting period. Non-operational factors, including tariff refunds, contributed to some of the upside, while full-year 2027 earnings consensus revisions remain negative but are shrinking in magnitude.
Among individual companies, Fresenius SE traded at 12 times Deutsche Bank’s estimated 2027 price-to-earnings ratio, with management anticipating EBIT growth at its Helios unit next year despite ongoing healthcare reforms in Germany. Lonza Group, meanwhile, is expected to post double-digit revenue and profit growth for 2026, with shares trading at 27 times the bank’s 2027 earnings estimate. Lonza’s shares were down 0.17% at 592.80 Swiss francs in early trading. Ottobock, which reported a clear acceleration in Q2 after a weaker first quarter, is valued at 16 times Deutsche Bank’s 2027 earnings estimate.
Valuations across the sector remain near the lower end of historical ranges, and Deutsche Bank emphasized that a sustained upward trend in consensus earnings will be necessary to justify further valuation re-rating. The bank also warned that risks persist, particularly in MedTech, where the potential for a sustained earnings recovery remains uncertain as the third quarter approaches. Additional macroeconomic pressures, including geopolitical tensions in the Middle East, could exacerbate inflation and weigh on sector performance.
