The 2015 All-Europe Research Team: Medical Technologies & Services, No. 3: Edward Ridley-Day & team
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The 2015 All-Europe Research Team: Medical Technologies & Services, No. 3: Edward Ridley-Day & team

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At No. 3 on this roster for a fourth consecutive year is Edward Ridley-Day’s two-person Bank of America Merrill Lynch squad.

< The 2015 All-Europe Research Team

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Edward Ridley-Day & team

Bank of America Merrill Lynch

First-place appearances: 6


Total appearances: 15


Team debut: 1995


At No. 3 on this roster for a fourth consecutive year is Edward Ridley-Day’s two-person Bank of America Merrill Lynch squad. From their base in London, the analysts report on 15 regional medical technologies and services stocks and highlight Fresenius Medical Care as a potential standout over the coming year. The German company, which provides renal dialysis products and services, could post sustained, mid-single-digit organic sales expansion as a result of structural growth in global demand for dialysis, they contend. “We expect a return to double-digit earnings growth in the full year 2015, supported by accelerating international service revenues, increasing demand for coordinated care in the U.S. and improving profitability, with margins supported by a $300 million cost-savings program,” says Ridley-Day, 39. Moreover, he notes, the BofA Merrill pair anticipates that “the cost of drugs used to treat patients with kidney failure [will] fall in the coming years as alternatives to current drugs become available,” further bolstering results. Finally, Fresenius’ valuation is also appealing, with the stock trading below its long-term average discount to its peers. More broadly, Ridley-Day and his colleague have a positive outlook on the regional sector, believing that defensive growth characteristics will continue to support performance in a market in which visible growth and yield are increasingly scarce. “We expect 14 percent aggregate earnings per share growth for the European sector in 2015, versus our European equity strategy team’s expectation for flat earnings growth for the wider European market,” he concludes.



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