UBS upgrades Coloplast on 'better matched' risk-reward

Coloplast A/S

11/12/2024 11:39

** UBS upgrades Danish medical equipment maker Coloplast
 COLOb.CO  to "neutral" from "sell", seeing risk-reward for the
shares "better matched"
    ** Previously identified risks are smaller or have passed,
it says, adding that though competitive pressures still persist,
they are better understood by investors, while reimbursement
risks have somewhat subsided
    ** The changes to Medicare reimbursement for catheters have
driven investor optimism on Coloplast as one of the largest
players in this segment, the broker says
    ** However, UBS says there is growing cautiousness with most
expecting more limited margin expansion in 2025 on the back of
recognising the need to invest in order to capture the potential
U.S. continence opportunity
    ** According to the brokerage, the expectations have been
reset, and are now "in a more reasonable place"
    ** It says Coloplast shares trade at about 40% sector
premium, in line with the historical average relative valuation
    ** Out of 25 analysts that cover the Coloplast stock, seven
rate it "strong buy" or "buy", 13 rate "hold" and five rate
"sell" - data compiled by LSEG

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