Jefferies outlined six themes for Europe's healthcare sector in 2026, predicting a year of transition driven by leadership changes and shifting investor sentiment. After a volatile 2025 where medtech lagged, the brokerage sees value emerging as valuations hit multi-year lows. A central issue is the wave of CEO and CFO turnover since the pandemic, leaving many companies without clear long-term guidance.

This uncertainty could act as a catalyst if new management delivers fresh strategies. Investor preference is moving toward firms with updated mid-term targets and solid annual forecasts. Jefferies warns that China-related growth expectations have cooled, while Chinese competitors are gaining ground in the U.S. and Canada, particularly in GLP-1 generics.

Consumer-exposed segments like hearing aids and dental underperformed for four straight years but hold upside if confidence rebounds. The GLP-1 drug market is also pivoting from packaging to other beneficiaries as oral versions and generics approach.