UBS raises Convatec price target to 360 (345) pence - 'buy' |
Trading update Tuesday |
How will the weight loss/diabetes reducing wonder drugs affect Convatec's insulin business? Novo Nordisk(who make such a drug) own 19% of Convatec and recently took their representative off the Convatec board.Curious! |
 ConvaTec Group plc issued an AGM trading update for the four months ended 30 April 2022 this morning. Group revenue increased by 4.1% on a reported basis, up 7.5% on a constant currency basis and up 6.0% on an organic basis. ConvaTec has made a good start to the year with good underlying growth in each of its four categories in line with expectations. ConvaTec also announced that it will be withdrawing from its hospital care activities and related industrial sales during the remainder of 2022. These low margin activities being exited generated $ 101 m of revenue in 2021. Given this phased exit of the hospital care and related industrial sales products, reported revenue in 2022 is expected to be approximately $ 20-30 m lower than 2021 and adjusted EBIT is expected to reduce by $3-5m. There is also expected to be a one-off adjusted P&L charge of approximately $55m, which will be incurred in 2022, and a cash cost of approximately $25m arising mainly in 2022. FY22 guidance is unchanged, management expect organic revenue growth of between 4.0% and 5.5% and a constant currency EBIT margin of at least 18%. Valuation is average, profitability is decent, growth relatively modest. The share price also lacks some momentum. CTEC is a share to monitor for now....
...from WealthOracleAM |
Buy recommendation in Shares Mag today ( when the share price was 221.9). |
Moving on very light volume |
Strong chance of M&A here |
Gross overreaction to the results - seems to be par for the course atm. |
It's decent result to me. Buy opportunity? |
Seems ripe for a takeover. |
Hi all,
My mate Peter @Conkers3 and myself did a ‘Twin Petes Investing’ Podcast last week and part of our discussion includes CTEC which we both see as a decent and solid Long-Term Hold kind of Stock. As always we also chatted about loads of other Stocks and Ideas for research and a fair bit of educational stuff with regards to Investing and Portfolio Management.
Specific topics in this one include the risks of anonymous Twitter Accounts and the devious tricks the ‘owners’ get up to, and we give examples of our own Trades and how we have Scaled in and Scaled out etc.
Anyway, if you use Youtube, Apple, Audioboom, Overcast, Google+ or Spotify you can find it under the 'Conkers Corner' Channel (you want Podcast TPI 44) and you can find it on Soundcloud at the link below.
I hope you enjoy it and find it useful, we try to keep them light and they are totally unscripted, with the intent being that it is like you are eavesdropping on us having a chat down the local boozer (we can dream !!).
Cheers, WD
@wheeliedealer |
CTEC is one of Shares magazine top picks for 2021. In brief - the business is looking healthier after rectifing earlier mistakes and earnings growth is back on the menu |
No news in the court case that Scapa (SCPA) brought against Convatec? |
Indeed, although I feel it may lose out to Kingfisher in the final furlong. The top four to replace the losers highlighted in The Observer are AVST,GVC,HSV and KGF at the moment although it is close between the latter and CTEC (I think all the others are safer bets). Review actually takes place at the close on Tuesday and changes become confirmed on Monday 22nd June.
The following site is an excellent reference point for this:
NB: All five might go in if ITV loses a bit more ground in the next three days. |
Getting some coverage about FTSE100 changeover, CTEC could move up on Fridayhttps://www.theguardian.com/business/2020/may/30/ftse-reshuffle-relegation-easyjet-carnival-centrica-gaming |
120 million share placing today. |
Bubloo,
they also do quite a bit of manufacturing in Belize as well |
bubloo,
no i think they manufacture in Deeside UK |
For the pessimists...….how about Dignity?? |
Seems like an excellent appointment and the market certainly seems to think so.Reckon he would have had a look at the company before agreeing to take up the position so altogether a positive signal methinks. |
does convatec source from china |
Register for real-time alerts, custom portfolio, and market movers
Hot Features
Premium
