5 Largest Orthopedic Companies in the World

4. Smith & Nephew plc (NYSE:SNN)

2021 Orthopedic Revenue: $4 billion

Smith & Nephew plc (NYSE:SNN) is a United Kingdom-based medical technology company with operations in over 100 countries and a history of 160 years. The company is a leading authority in the field of joint replacement systems for hips, knees, and shoulders.

On January 9, Veronika Dubajova at Citi initiated coverage on Smith & Nephew plc (NYSE:SNN) stock with a Buy rating and a target price of $31.03. The target price reflects a potential upside of 8.4% from the closing price on January 12. Dubajova anticipates an improvement in the company’s surgical procedure volumes that could aid Smith & Nephew plc (NYSE:SNN) in delivering above-average revenue and earnings growth in 2023. The analyst prefers companies that can withstand macroeconomic uncertainties.

Here’s what Palm Valley Capital Management said about Smith & Nephew plc (NYSE:SNN) in its Q3 2022 investor letter:

“We bought Smith & Nephew plc (NYSE:SNN) toward the end of the quarter. Smith & Nephew is a Londonbased medical device company that specializes in knee and hip replacements, sports medicine, and wound management. We purchased the ADR, which has declined meaningfully (-31% year-to-date) along with the British pound. While Smith & Nephew’s stock is priced in pounds, its revenues are in other major currencies, such as the dollar, euro, and yen. In 2021, 51% of its revenues were generated in the United States, while 31% were in other developed markets. We believe Smith & Nephew is a high-quality business that generates above average profit margins and abundant free cash flow. We were pleased the turmoil in the British pound provided us with the opportunity to purchase its shares at a discount to our calculated valuation.”