Few obvious near-term catalysts for Coloplast - Berenberg cuts to 'hold'

Coloplast A/S

21/02/2024 11:34

** Berenberg downgrades Danish medical equipment maker
Coloplast  COLOb.CO  to "hold" from "buy", seeing few obvious
near-term catalysts after rally since November 
    ** Brokerage ups target price to DKK 900, just above current
price of DKK 890.20, which, it says, has factored in company's
improved performance and is a premium to its 10-yr avg PE
    ** While Berenberg remains confident of over 30% margins in
the medium term, it sees limited upside due to Coloplast's
expectation of raw materials, labour cost headwinds in 2023-2024
    ** Brokerage says several medium-term growth drivers, like
new catheter platform Luja and recently acquired Kerecis, are
either captured in consensus or are too small to create
meaningful growth to support further re-rating of shares in 2024
    ** Organic growth in China remains below the company's
Strive25 target of double-digit, it says, seeing little cause
for optimism on a near-term improvement
    ** Of 23 analysts that cover Coloplast, five rate it "strong
buy" or "buy", 16 rate "hold", and two rate "sell" -LSEG data

 (Reporting by Marta Frąckowiak)
 ((gdansk.newsroom@thomsonreuters.com; +48 58 7696600;))