Smith & Nephew's (SNN) upcoming Q1 results on April 30, face caution by analysts amid weak growth and China-related headwinds, RBC Capital Markets said in a report Thursday.

"We would be cautious into Q1 results on 30th April, given the expected weaker growth in the quarter and continuing uncertainty around China and tariffs," RBC said.

Despite a consensus forecast of 1.9% underlying growth, near the top of company guidance, RBC analysts anticipate weak performance in Orthopaedics and Sports Medicine due to continued challenges in China, and project Q1 segment growth of just 0.8% in Orthopaedics and 0.5% in Sports Medicine & ENT, with stronger performance in Wound Care at 3.8%, the report said.

The brokerage highlighted potential tariff-related headwinds, estimating a 0.6 percentage point impact on gross margin and a 3% hit to earnings per share, while cautioning that expected stronger growth and margin improvement in the second half of 2025 could introduce execution risk, making the company's shares less appealing in the current macroeconomic and geopolitical climate, according to the report.

"However, we continue to be bullish into year-end 2025 results, given the likelihood of either a turnaround or divestment," RBC said.

RBC maintained an outperform rating on Smith & Nephew with a price target of 14 British-pound ($18.61).

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