European Health Care Equipment and Services: A Mixed Bag

CFRA sees a mixture of tailwinds and headwinds for the European Health Care Equipment and Services sector going into 2024. We expect the improvement in elective procedures and results from cost savings/transformation programs to support growth next year. Moderating energy costs against the 2022 level is positive, but we are mindful of other inflation costs, such as wages. We are also cautious of the uncertainty in China, including the impact from the implementation of volume-based procurement program (VBP) as well as the ongoing anti-corruption campaign in the country, which has been causing some delays in purchasing and orders.