<div id="readability-page-1"><div>** Tariffs, destocking, US funding risk and China hit European medtech stocks in 2025 but challenges are priced in, says Exane BNP Paribas as it picks its favourites in the sector** According to the brokerage, re-rating will materialize in the second half of 2026** BNP top picks are Essilorluxottica , Sartorius Stedim and Fresenius ** It double upgrades Straumann from &#34;underperform&#34; to &#34;outperform,&#34; seeing sales bouncing back and low valuation** It upgrades Sartorius to &#34;outperform&#34; from &#34;neutral&#34; on improving trends in equipment and a better funding environment** It downgrades Siemens Healthineers to &#34;neutral&#34; from &#34;outperform&#34; given the parent firm's overhang, unclear timing and structure for a Diagnostics exit, and a limited upside to consensus** It also cuts Gerresheimer's rating to &#34;underperform&#34; from &#34;neutral&#34; on weakening end-markets, high leverage and unclear path to FCF recovery<div><table><thead><tr><th>COMPANY</th><th>RATING</th><th>OLD RATING</th><th>PT</th></tr></thead><tbody><tr><td>Alcon</td><td>Outperform</td><td>Outperform</td><td>84 Swiss francs</td></tr><tr><td>Demant</td><td>Outperform</td><td>Outperform</td><td>285 DKK</td></tr><tr><td>Essilorluxottica</td><td>Outperform</td><td>Outperform</td><td>365 euros</td></tr><tr><td>Fresenius Med</td><td>Neutral</td><td>Neutral</td><td>45 euros</td></tr><tr><td>Fresenius SE</td><td>Outperform</td><td>Outperform</td><td>60 euros</td></tr><tr><td>Gerresheimer</td><td>Underperform</td><td>Neutral</td><td>22 euros</td></tr><tr><td>GN Store Nord</td><td>Outperform</td><td>Outperform</td><td>145 DKK</td></tr><tr><td>Lonza</td><td>Outperform</td><td>Outperform</td><td>701 Swiss francs</td></tr><tr><td>Philips </td><td>Outperform</td><td>Outperform</td><td>30 euros</td></tr><tr><td>Sartorius pref</td><td>Outperform</td><td>Neutral</td><td>296 euros</td></tr><tr><td>Sartorius Stedim Biotech</td><td>Outperform</td><td>Outperform</td><td>275 euros</td></tr><tr><td>SCHOTT Pharma</td><td>Outperform</td><td>Outperform</td><td>22 euros</td></tr><tr><td>Siemens Healthineers </td><td>Neutral</td><td>Outperform</td><td>48 euros</td></tr><tr><td>Straumann</td><td>Outperform</td><td>Underperform</td><td>110 Swiss francs</td></tr></tbody></table></div></div></div>

BNP Paribas sees a re-rating for European medtech stocks in H2 2026, despite 2025 challenges. Top picks include Essilorluxottica, Sartorius Stedim, and Fresenius. Straumann upgraded to "outperform" due to sales recovery and low valuation. Sartorius upgraded to "outperform" on improving equipment trends. Siemens Healthineers downgraded to "neutral" due to parent firm's overhang. Gerresheimer downgraded to "underperform" due to weakening markets and high leverage.

BNP picks medtech favourites, sees re-rating in H2 2026