Moody’s Upgrades Smith & Nephew (SNN) Long-Term Rating, Citing Strong Revenue and Margin Growth

Smith & Nephew plc (NYSE:SNN) ranks among the best medical device stocks to invest in. Moody’s Ratings upgraded Smith & Nephew plc (NYSE:SNN)’s Baa2 long-term issuer ratings from stable to positive on October 2. Despite possible concern from US tariffs, the update shows strong organic revenue and margin growth backed by the company’s ongoing transformation plan.

The company’s improved free cash flow generation, which has returned to pre-pandemic levels, has improved financial flexibility, according to Moody’s. The firm also noted Smith & Nephew’s cautious financial strategy, which aims for a company net leverage of about 2x.

Additionally, Moody’s expects Smith & Nephew plc (NYSE:SNN) to generate around $400 million in free cash flow following dividends in 2025 and $500 million in 2026.

Smith & Nephew plc (NYSE:SNN), a global medical technology company based in the UK, provides a broad selection of products and services in the medical equipment sector to meet the needs of its customers.

While we acknowledge the potential of SNN to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than SNN and that has 100x upside potential, check out our report about this cheapest AI stock.

READ NEXT: 10 Best Magic Formula Stocks for 2025 and 10 Best Retirement Stocks to Buy According to Hedge Funds.

Disclosure: None. This article is originally published at Insider Monkey.