Stifel Nicolaus analyst Christian Glennie maintained a Buy rating on ConvaTec (CTEC – Research Report) today and set a price target of p305.00.
Christian Glennie has given his Buy rating due to a combination of factors that highlight ConvaTec’s strong financial performance and promising outlook. The company’s FY24 results exceeded expectations, with organic revenue growth reaching 7.7%, marking the highest since its IPO. This growth was supported by solid performance across all divisions, particularly in the IC segment, and an adjusted EBIT margin of 21.2%, which surpassed guidance and marked the highest margin since 2018.
Looking forward, ConvaTec’s outlook for FY25 remains positive, with anticipated organic sales growth of 5-7% and expected margin expansion to 22.0-22.5%. Despite potential challenges, such as the exclusion of Medicare coverage for InnovaMatrix, the company maintains its mid-term growth and margin expansion targets. This stability and the potential for double-digit EPS and free cash flow growth underpin Glennie’s confidence in ConvaTec’s stock, justifying the Buy rating.
According to TipRanks, Glennie is ranked #8926 out of 9385 analysts.