RBC ups Coloplast to 'outperform' as margin risks subside

Atos SE

03/03/2025 12:20

** RBC upgrades Danish medical equipment maker Coloplast COLOb.CO to "outperform" from "sector perform" and raises PT by 2.2% to DKK 940 based on a more positive risk/reward

** It points to the resolution of near-term operational hiccups, which had led to disappointing margin performance

** It expects delivery on the expected margin recovery through 2025 and 2026 to support valuation premium returning towards historical levels

** RBC also sees potential mid-single-digit pct earnings upside by 2029 from further success of Coloplast's efforts to improve clinical standards in chronic segments

** It adds consensus estimates for 2025-2026 growth in Kerecis, Continence and Atos Medical might be conservative, seeing an about 40% chance that one or more of these divisions beats expectations

** Out of 34 analysts that cover Coloplast, ten rate it "strong buy" or "buy", ten "hold" and four "sell"

 (Reporting by Marta Frackowiak in Gdansk)

 ((marta.frackowiak@thomsonreuters.com))