Jefferies moves Demant, Sonova to 'hold,' sees hearing-aid sector rally maturing

** Jefferies says the risk-reward in the hearing-aid sector has become more balanced following a strong year-to-date re-rating, and changes its ratings on Demant DEMANT.CO and Sonova SOON.S

** Broker downgrades Danish hearing aid maker Demant to "hold" from "buy" as the stock's valuation reflects fair value following a strong year-to-date rally

** Jefferies notes that the catalysts supporting its previous positive stance have materialized, including several guidance upgrades and a return to share buybacks

** It raises its PT for Demant by 14% to DKK 395, implying limited upside compared to Monday's closing price of DKK 377

** Jefferies upgrades Swiss peer Sonova to "hold" as better market conditions and encouraging early feedback on new products help to reduce downside risks

** Jefferies notes that investors are less likely to stay active in the sector as "product differentiation is difficult to assess" pending feedback from audiologists