Barclays ups Coloplast, sees faster growth boosting margins

Coloplast A/S

22/07/2024 11:23

** Barclays upgrades Danish medical equipment maker
Coloplast  COLOb.CO  to "overweight" from "equal-weight",
turning positive on the stock for the first time since 2019
    ** It says accelerating organic growth should build up
margins and returns from their trough levels
    ** Barclays expects organic sales growth to accelerate to
10% in 2026, with margins rising to about 31%
    ** It says concerns around biologics are overdone,
estimating a limited earnings impact in the worst case scenario;
it also sees upward potential in U.S. continence care
    ** It raises PT by 15% to DKK 1,015, and says it sees a more
than 40% potential upside to the shares
    ** It adds a significant premium to the sector is warranted
thanks to Coloplast's best-in-class profitability and execution
    ** The stock is up 3.1% in early afternoon trade
    ** Of 23 analysts that cover Coloplast, seven rate it
"strong buy" or "buy", 13 "hold" and three "sell" - LSEG data

 (Reporting by Marta Frąckowiak)
 ((marta.frackowiak@thomsonreuters.com))