From Morningstar: 2024-11-12 05:46:21

Medical products and technology company Convatec (CTEC) leads the FTSE 100 with a 20% share price increase at market open. The wound care specialist raised its 2024 revenue growth guidance to 7.7%, surpassing expectations. Shares are trading at £2.60, up 7.78% year to date.

Convatec raised its 2024 revenue outlook to 7.25-8% with a 21.5% adjusted operating profit margin increase. Improved revenue growth is attributed to a diverse product portfolio, new launches, and operational efficiency. Divisions like Advanced Wound Care and Continence Care drive growth.

Morningstar metrics for Convatec (CTEC) show a narrow Economic Moat, Fair Value Estimate of £2.71, 4-star Morningstar Rating, Medium Uncertainty Rating, and 2.28% Forward Dividend Yield. Analyst Debbie Wang praises Convatec’s progress, citing operational focus and product commercialization as key drivers of growth and profitability.

Under CEO Karim Bitar, Convatec is realizing its potential and maintaining a narrow moat, pushing growth higher. Morningstar’s Fair Value Estimate is £2.71. The authors do not own shares in any mentioned securities. Morningstar’s editorial policies adhere to ethical standards.



Read more at Morningstar: Convatec Surges 20%, Shares Still Undervalued