Carl Zeiss: Recovery Has Started

Carl Zeiss Meditec remains a 'Strong Buy' despite prolonged challenges, with a revised price target of €65/share (ADR: $75.42). Core revenue remains resilient, but earnings are pressured by suboptimal product mix, China exposure, and negative operating leverage. Management is executing cost-cutting, product launches, and manufacturing shifts outside China, supporting a recovery thesis and downside protection.