Sonova's March Results and Cautious Fiscal 2021 Outlook in Line With Peers; Maintaining FVE

We have recently revised down our forecasts and fair value estimates for all three hearing aid manufacturers in our coverage as we anticipated a material slowdown in the foot traffic affecting both wholesale and retail segments. Narrow-moat Sonova's fiscal 2020 results (ended March) and the commentary around March volumes and 2021 expectations confirm our assessment of a challenging year ahead. With the fiscal 2021 outlook remaining highly uncertain, we maintain our downward-revised forecast and our fair value estimate for the firm. We do not anticipate a business recovery until midyear at best but more likely not until calendar 2021 (assuming no second wave of the coronavirus pandemic).