(Alliance News) - Over the past five years, the leading European listed hearing aid manufacturers have lost 30% against a 75% increase in the Stoxx600.
As Milano Finanza points out, the negative trend is set to continue in 2025: Sonova is down 32%, Demant 17%, GN Store Nord 16% and Amplifon 44%. Weighing heavily are fears of growing competition that challenges a historic oligopoly, first from the US, with Apple and Bose, today from EssilorLuxottica, and tomorrow, potentially, from Chinese manufacturers.
The advance of AI improves products but accelerates obsolescence, increasing competitive pressure. Added to this is the threat of smart audio glasses such as Meta–EssilorLuxottica's Nuance, which could erode the segment of users with mild to moderate hearing loss, with negative effects on the sector's growth.
Earnings expectations for 2025 have been cut by about 25% and multiples have compressed, with the P/E ratio falling from 23 to 17, fueling fears of a "value trap."
Positive structural factors are slowing down: weak consumption, lower managed care coverage in the US, and a less favorable demographic impact. Market growth is estimated at around 3% in 2025 and 3-4% in 2026.
Analysts remain selective: AlphaValue maintains its 'buy' rating on Amplifon and Sonova, albeit with reduced targets; Demant remains attractive due to its low valuations; GN Store Nord appears more fragile.
Goldman Sachs is more cautious: 'buy' only on Demant, 'neutral' on Sonova and Amplifon, 'sell' on GN, considering it premature to bet on a rebound in the sector in 2026.
By Giuseppe Fabio Ciccomascolo, Alliance News senior reporter
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