JPM cuts Coloplast on earnings downside, valuation risks

Coloplast A/S

09/09/2026 07:10

** J.P.Morgan downgrades Danish medical device maker Coloplast COLOb.CO to "underweight" from "neutral" due to downside risks related to its mid-term targets and valuation
** JPM expects new CEO Gavin Wood to cut mid-term targets as "the earnings profile is still deteriorating", it says
** It sees a valuation disconnect, as the shares trade at a premium price-to-earnings ratio compared to the medical technology sector despite slow expected earnings per share growth
** Near-term concerns include commercial execution challenges in the U.S., market softness creating a drag on the Kerecis biologic wound care unit, and continued cost inflation, the brokerage adds
** "Looking forward, we see cost inflation, FX and Kerecis to likely to remain headwinds," JPM says
** Five out of 24 analysts covering the stock rate it "strong buy"/"buy", 15 "hold" and four "sell" - LSEG data

(Reporting by Vera Dvorakova)
((vera.dvorakova@thomsonreuters.com))