Hsbc Moves Coloplast To 'hold' On Balanced Risk: reward setup

Coloplast A/S

15/05/2025 11:44

** HSBC downgrades Danish medical equipment maker Coloplast COLOb.CO to "hold" from "buy", citing risk of further estimate cuts and a balanced risk-reward setup

** The key debates on the stock include CEO change, lower growth and margin, market share losses and long-term goals, the broker says

** Ahead of the CMD on Sept. 2, most investors are expecting the company's financial guidance to be lower than the long-term financial targets of 8-10% organic growth p.a. and 30% EBIT margin, it adds

** "As the company would most likely be setting targets in September before the new CEO joins, Coloplast might use this as an opportunity to kitchen sink," as per the brokerage

** Moreover, consensus is including the company's return to growth in ostomy and wound care in H2, with growth estimates higher than peers', it says

** It cuts PT by 22% to DKK 670 on lower estimates and higher weighted average cost of capital (WACC)

** Out of 24 analysts that cover Coloplast, four rate the stock "strong buy","​ 18 rate it "hold" and two​ "sell"

 (Reporting by Marta Frąckowiak)

 ((marta.frackowiak@thomsonreuters.com))