Convatec Group (CTEC)

Sector:

Health Care

Index:

FTSE 250

180.10p
   
  • Change Today:
    -0.60p
  • 52 Week High: 220.40
  • 52 Week Low: 132.55
  • Currency: UK Pounds
  • Shares Issued: 1,983.51m
  • Volume: 3,684,251
  • Market Cap: £3,572.31m
  • RiskGrade: 232

JPMorgan downgrades ConvaTec on valuation

By Michele Maatouk

Date: Monday 20 Jan 2020

LONDON (ShareCast) - (Sharecast News) - JPMorgan Cazenove downgraded its stance on shares of medical products maker ConvaTec to 'underweight' from 'neutral' on Monday, cutting the price target to 168p from 171p as it pointed to an unattractive risk/reward.

It noted that after posting a 79% gain since the 2018 results and the announcement of the new restructuring plan, ConvaTec now trades at all-time highs relative to the UK index and the European medical technology sector.

It pointed out that the shares are trading higher relative to indices than they did at the time of IPO.

While the equity story is similar to the time of IPO - defensive growth with margin expansion - the starting point for margins is significantly lower, it said.

"In terms of opex and investment, while competitors (notably Coloplast) have made significant strides, ConvaTec has stood still or taken a step back. This is most obvious in R&D and product development, where ConvaTec's pipeline is at an all-time low.

"In our view, the most significant factor in the turnaround will be generating sales growth close to end-market growth (around 4%); with a depleted product pipeline, apparent limited growth in salesforce and more intense competition this looks challenging. Initial comments from the CEO suggest that further opex investment (beyond the transformation plan) may be required."

At 1015 GMT, the shares were down 2.9% at 206.70p.

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Note 1: Prices and trades are provided by Digital Look Corporate Solutions and are delayed by at least 15 minutes.

Note 2: RiskGrade figures are provided by RiskMetrics.

 

CTEC Market Data

Currency UK Pounds
Share Price 180.10p
Change Today -0.60p
% Change -0.33 %
52 Week High 220.40
52 Week Low 132.55
Volume 3,684,251
Shares Issued 1,983.51m
Market Cap £3,572.31m
RiskGrade 232

CTEC Star Ratings

Compare performance with the sector and the market.
more star ratings
Key: vs Market vs Sector
Value
66.22% below the market average66.22% below the market average66.22% below the market average66.22% below the market average66.22% below the market average
8.11% above the sector average8.11% above the sector average8.11% above the sector average8.11% above the sector average8.11% above the sector average
Price Trend
75.34% above the market average75.34% above the market average75.34% above the market average75.34% above the market average75.34% above the market average
21.95% above the sector average21.95% above the sector average21.95% above the sector average21.95% above the sector average21.95% above the sector average
Income
63.78% below the market average63.78% below the market average63.78% below the market average63.78% below the market average63.78% below the market average
20.00% above the sector average20.00% above the sector average20.00% above the sector average20.00% above the sector average20.00% above the sector average
Growth
94.27% below the market average94.27% below the market average94.27% below the market average94.27% below the market average94.27% below the market average
100% below the sector average100% below the sector average100% below the sector average100% below the sector average100% below the sector average

What The Brokers Say

Strong Buy 6
Buy 1
Neutral 6
Sell 1
Strong Sell 2
Total 16
buy
Broker recommendations should not be taken as investment advice, and are provided by the authorised brokers listed on this page.

CTEC Dividends

  Latest Previous
  Final Interim
Ex-Div 02-Apr-20 05-Sep-19
Paid 14-May-20 17-Oct-19
Amount 3.98¢ 1.72¢

Trades for 03-Apr-2020

Time Volume / Share Price
16:57 2,600 @ 180.57p
16:35 1,377,570 @ 180.10p
16:29 183 @ 179.80p
16:29 1,250 @ 179.80p
16:29 870 @ 179.70p

CTEC Key Personnel

CFO Frank Schulkes
CEO Karim Bitar
Chair John McAdam

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