STOCK MARKET BLOG FEBRUARY 2025

by the CEO Silvano Grimaldi of the independent asset management company GRIMALDI & PARTNERS AG

MONTHLY REVIEW

The international stock markets ended the month of February mixed.

POSTIVE FACTORS

Solid retail sales in the US
Stable labor market data
progress in inflationary pressures
Over 80% of reporting US companies exceeded analyst expectations

NEGATIVE FACTORS

Trump threatens to impose trade tariffs against China, Mexico, Canada and the EU
AI-related stocks plummet due to new Chinese competition
Weakening of consumer confidence in the US in February
Disappointing figures from Google, especially in the cloud business

STOCK IN FOCUS

STRAUMANN remains on growth path

Straumann expects further growth for 2025, even if the forecast is initially cautious.

In 2024, the dental implant manufacturer achieved sales of 2.5 billion Swiss francs (+3.7%), organically +13.7%. Growth was particularly strong in Asia/Pacific (+33%), while North America only grew by 3.6%. Nevertheless, CEO Guillaume Daniellot sees a positive development and emphasizes that Straumann has grown better than the market here.

The new US administration is not a concern for the company, as production capacity exists locally. In Asia, growth is expected to continue to normalize.

Core operating profit (Core EBIT) rose to CHF 650 million (margin 26%). Profit was CHF 439 million (previous year: CHF 247 million). The dividend is expected to rise to CHF 0.95 per share (previous year: CHF 0.85).

For 2025, Straumann is targeting organic sales growth in the high single-digit range and a slightly increasing EBIT margin. Analysts consider the outlook to be cautious. After a weak start, the share price turned positive (+2.7%).

Conclusion: Straumann is continuing its growth path, but remains cautious in its forecast. Business was particularly strong in Asia, while North America secured market share despite lower growth. Profitability is increasing, and investors are benefiting from a higher dividend.

MONTHLY OUTLOOK

OPPORTUNITIES

Possible interest rate cut by the Swiss National Bank (SNB) to 0.25% on March 20
Expected earnings growth of 12% for the S&P 500 in 2025
Potential recovery in value stocks and blue-chip companies
Moderate GDP growth of about 2% in the US

RISKS

Unexpected deterioration of the consumer climate in Germany in March
Political uncertainty in Germany after the elections
Persistently high inflation, especially in the Eurozone's services sector
Possible trade tensions between the US and other countries such as China, Mexico, Canada and the EU

We expect an upward trend for the month of MARCH 2025 .

STOCK RECOMMENDATION: STRAUMANN