London, Jan 31, 2026, 09:31 GMT — Markets have closed.
- Shares of Smith & Nephew climbed Friday in London, outpacing the wider market.
- Fitch gave the medtech group a BBB+ credit rating, signaling investment grade, and maintained a stable outlook.
- Attention turns to next week’s rate decisions and the company’s full-year results due March 2.
Shares of Smith & Nephew (SN.L) rose 2.35% on Friday, closing near 1,242 pence in London after fluctuating between 1,217 and 1,255.77 pence. This gain outperformed the FTSE 100’s 0.51% increase and puts the medical-device company’s market value at roughly £10.54 billion. (Hargreaves Lansdown)
On Friday, Fitch Ratings gave Smith & Nephew a “BBB+” long-term issuer default rating, maintaining a stable outlook. This rating reflects the agency’s assessment of default risk and positions the company firmly within the investment-grade category—often favored by bond investors. (Fitch Ratings)
The rating comes just before Smith & Nephew’s upcoming Q4 and full-year results, scheduled for March 2. On its investor site, the company states it plans to maintain investment-grade credit ratings and targets a leverage ratio near 2x, while preserving flexibility for acquisitions. (Smith & Nephew)
As the London market remains closed until Monday, Feb. 2, traders are eyeing key macro events that could move sterling and the dollar. The Bank of England’s next rate decision is set for Feb. 5, followed by the U.S. payrolls report on Feb. 6. (Bank of England)
Smith & Nephew announced in January it will acquire U.S. firm Integrity Orthopaedics for as much as $450 million, with $225 million paid upfront and the remainder contingent on performance milestones. The deal will be funded using the company’s current cash resources. (Reuters)
In December, the group outlined medium-term goals aiming for over $1 billion in free cash flow by 2028 and underlying revenue growth of 6% to 7% compounded annually, excluding currency fluctuations and deal impacts. Jack Reynolds-Clark from RBC Capital Markets admitted the increased targets made him “nervous until the company can demonstrate reliably that it can generate this growth.” (Reuters)
For equity investors, the real question is clear: does the March update justify the share rerating? What will carry more weight than another slide deck is guidance for 2026, cash generation, and any hints on pricing in orthopaedics.
However, the stock could slide fast if procedure volumes drop or if hospitals push back more aggressively on pricing for hips, knees, and sports medicine implants. Margin improvements also depend heavily on execution — any hiccup in the supply chain or a less favorable currency mix could erode those gains.
Smith & Nephew’s orthopaedics division goes head-to-head with larger players like Stryker and Zimmer Biomet, and its wound-care segment overlaps with Convatec. Even on quiet days for the company, shifts in the wider healthcare sector can hit its shares.
Shares will resume trading Monday, carrying over Friday’s credit developments. The market’s focus, however, is shifting toward the future. Smith & Nephew’s March 2 earnings report is the next major event, as investors anticipate 2026 guidance and updates on deal integration.
