ConvaTec Group PLC: Feedback from the management presentation

Research evidence excerpt

ConvaTec Group PLC: Feedback from the management presentation

Equity Research

European Medical Technology & Services

21 May 2026

ConvaTec Group PLC

Feedback from the management

presentation

Commentary of an even more H2 skewed guide given 4m CTEC.L/CTEC LN OVERWEIGHT

POSITIVEgrowth and reported margins down in H1 weighing on shares. EuropeanTechnologyMedical& Services

Mgt confident on growth accel in H2 and a manageable Price Target GBp 320

$20-30m P&L impact in '27 from cost inflation is reassuring. Price (20-May-26) GBp 214 Potential Upside/Downside +49.4%

Source: Bloomberg, Barclays ResearchIMX revs of $LSDm with FY $20m target maintained, but

higher uncertainty

European Medical Technology &

Services

Following the four-month trading update this morning (see Trading update first take: Softer Hassan Al-Wakeel, CFA

start, H2 accel as planned, patch pump deal announced, May 21), we joined the management +44 (0)20 7773 3898

presentation. We highlight three key takeaways: 1) Guidance phasing: H2 weighting to be more hassan.al-wakeel@barclays.com

skewed given trading update miss, H1 revenue expected to be at the lower end of the guided Barclays, UK

+5% to +7%. Margin on a ccy growth basis flat y/y in H1 and we note the 40bps FX headwind for Jonathon Unwin

the full year is entirely in H1, implying a more significant H2 ramp. 2) Cost inflation: Based on +44 (0)20 7773 0354

current prices and the state of the world, management would expect a $20-30m hit to the P&L in jonathon.unwin@barclays.com

2027, which is expected to be manageable (as a reminder, a 1% increase in inflation above 3% in Barclays, UK

2027 would be a $7-$8m impact). 3) Biologics: IMX revenues were in the $LSD millions, although Marco Pires-Cox

management reiterated full year expectations of $20m.