By Silvano Grimaldi, CEO of the independent asset management firm Grimaldi & Partners AG.
Monthly Review
International equity markets ended February 2025 with mixed performance.
Positive Factors
- Solid retail sales in the United States
- Stable labour-market data
- Progress in easing inflationary pressure
- More than 80% of reporting US companies exceeded analysts’ expectations
Negative Factors
Threat of new trade tariffs: Donald Trump threatened to introduce tariffs against China, Mexico, Canada and the European Union.
Decline in AI-related stocks: Artificial-intelligence shares came under pressure following the emergence of new competition from China.
Weakening US consumer confidence: Consumer sentiment deteriorated in the United States during February.
Disappointing results from Google: The company’s figures fell short of expectations, particularly in its cloud business.
Stock in Focus
Straumann Remains on a Growth Path
Straumann expects further growth in 2025, although its initial outlook remains cautious.
In 2024, the dental-implant manufacturer generated revenue of CHF 2.5 billion, representing reported growth of 3.7% and organic growth of 13.7%.
Growth was particularly strong in Asia-Pacific, where revenue increased by 33%, while North America recorded growth of only 3.6%.
Nevertheless, CEO Guillaume Daniellot highlighted the company’s positive development and emphasised that Straumann had outperformed the broader market in North America.
The company is not concerned about the new US administration because it already has local production capacity. In Asia, growth is expected to continue normalising.
Core operating profit increased to CHF 650 million, corresponding to a margin of 26%.
Net profit reached CHF 439 million, compared with CHF 247 million in the previous year.
The company intends to increase its dividend to CHF 0.95 per share, compared with CHF 0.85 in the previous year.
For 2025, Straumann is targeting high single-digit organic revenue growth and a slightly higher EBIT margin.
Analysts consider the outlook cautious. After a weak start, the share price moved into positive territory and gained 2.7%.
In summary, Straumann continues on its growth path while maintaining a cautious outlook. Business performance was particularly strong in Asia, while the company gained market share in North America despite lower growth.
Profitability continued to improve, and shareholders are expected to benefit from a higher dividend.
Outlook – March 2025
Opportunities
- Potential interest-rate cut by the Swiss National Bank: The SNB could lower its policy rate to 0.25% on 20 March.
- Expected earnings growth in the United States: Earnings for the S&P 500 are forecast to increase by approximately 12% in 2025.
- Potential recovery in value and blue-chip stocks: A rotation towards established, attractively valued companies could support equity markets.
- Moderate US economic growth: US GDP is expected to grow by approximately 2%.
Risks
- Unexpected deterioration in German consumer sentiment: A further decline in March could place pressure on the economic outlook.
- Political uncertainty in Germany: Uncertainty following the elections could negatively affect investor confidence.
- Persistently high inflation: Inflation remains elevated, particularly within the eurozone services sector.
- Potential trade tensions: Disputes between the United States and countries or regions such as China, Mexico, Canada and the European Union could intensify.
Performance Expectations
For March 2025, we expect an upward trend in international equity markets.
Stock Recommendation: Straumann
This publication is provided for informational purposes only and does not constitute investment advice or a recommendation to buy or sell any financial instrument. Past performance is not indicative of future results.
