< The 2016 All-Europe Research Team
Michael Jüngling & team
Morgan Stanley
First-place appearances: 4
Total appearances: 7
Team debut: 2003
At No. 2 are Michael Jüngling, 43, and his Morgan Stanley colleagues in London, who rose from second place to first last year. Europe’s medical technologies and services shares earn an equal weight rating from this crew, which reports on 16 names in the space. “Valuations are currently in line with the ten-year average, compared to last year, when the sector was at a discount,” New York–based Jüngling notes. Potential standouts, the researchers believe, include Switzerland’s Straumann Holding, which manufactures dental implants. “This is a product-cycle story driven by the Bone Level Tapered Implant, which should lead to top-in-class organic sales growth in 2016,” he explains. Trading at Sf291.50 in mid-January, the stock holds a price target of Sf351. Jüngling and his associates also look favorably on William Demant Holding, a Denmark-based maker of hearing aids and audiometric equipment. “We believe the company is likely to launch a new high-end hearing aid in 2016, potentially consisting of the world’s first dual-frequency wireless hearing aid, which has the potential to accelerate organic sales growth and help to show a positive margin inflection in 2016,” he reports. Their target of 714 Danish kroner implies an 18.8 percent upside to William Demant’s share price in mid-January. Finally, as a self-help play, Morgan Stanley’s squad recommends that investors buy shares of Fresenius Medical Care, a Germany-based provider of renal dialysis products and services. Its stock was trading at €71.38 in mid-January, and the team projects a rise to €91.
