Bernstein Names Sonova and Alcon as Top European Medtech Picks for H2 2026

Analysts at Bernstein have highlighted two key opportunities in the European medical technology sector for the second half of the year, naming Sonova as its top short-term pick and Alcon as its preferred long-term investment. The selections come as the broader European medtech space has underperformed in 2026, with most stocks seeing their premium valuations decline, according to a new research note.

Sector Context

The European medtech sector has faced a difficult year, with Bernstein noting that only Demant and Sonova have managed to outperform the Stoxx 600 benchmark in 2026. This challenging backdrop, marked by a sector-wide valuation de-rating, has sharpened the focus on companies with distinct growth drivers and resilient market positions.

Sonova Tapped for Near-Term Catalysts

Bernstein designated Sonova (SOON), the world's largest hearing aid manufacturer with an approximate 25% unit share, as its leading short-term idea, issuing an "Outperform" rating and a CHF 275 price target.

The firm's analysts project Sonova's H1 wholesale organic growth will reach 10.1%, significantly ahead of the 8% consensus estimate. They also forecast Group organic growth of 6.5%, compared to a consensus of 4.9%. Key drivers for this outperformance include:

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• Continued strength from its EON Sphere product launch.
• Further market share gains at Costco following a new device introduction in March 2026.
• A sustained sales tailwind from its Virto R hearing aids.
• An expected sharp improvement in its Cochlear Implant division.

Bernstein's core EBIT estimates for Sonova are 5-8% above consensus for the fiscal years 2026/27 through 2028/29.

Alcon Positioned as a Long-Term Compounder

For a longer investment horizon, Bernstein favors ophthalmology leader Alcon (ALC), assigning an "Outperform" rating and a CHF 76.15 price target. The firm argues that recent investor negativity surrounding Alcon's intraocular lens (IOL) and consumables businesses is "overly negative" and that the pressures are "largely transitory."

While acknowledging near-term competitive headwinds in the U.S. from Johnson & Johnson's PureSee launch, Bernstein expects Alcon to defend its market share, driven by its PanOptix Pro and the upcoming Vivity Pro in 2027. The note projects Alcon's implantables growth will accelerate to 4% in 2027. Bernstein’s revenue growth estimates for Alcon are 38-112 basis points above consensus for 2026-2028, with core EPS estimates running 1-9% higher. The report views the stock's valuation of roughly 17x next-twelve-months P/E as an attractive entry point.