Kepler Cheuvreux initiated coverage on ConvaTec Group PLC with a buy rating and a price target of 286 pence, reflecting confidence in the medical products manufacturer’s growth trajectory.
The brokerage projects ConvaTec’s earnings per share to grow at a low double-digit compound annual rate, supported by an expected recovery in sales and operational improvements. ConvaTec’s stock rose 0.4% to 228.4 pence following the announcement, while the FTSE 250 index advanced 0.6%.
Kepler anticipates ConvaTec’s growth to reach around 7% in the coming years, driven by initiatives including the reset of its InnovaMatrix business segment. The company is also expected to see margins expand into the mid-20% range as restructuring efforts take hold, alongside robust free cash flow generation.
The analysis highlights fiscal year 2027 as a pivotal period for ConvaTec, offering clearer visibility on sales performance and capital expenditure trends. The brokerage’s outlook aligns with broader expectations for the healthcare sector, where operational efficiency and product innovation remain key drivers of valuation.
