ConvaTec: Sales briefing feedback – H2 delivery remains credible

研报英文原文证据摘录

ConvaTec: Sales briefing feedback – H2 delivery remains credible

Deutsche Bank Group

Deutsche Numis Research

Rating Company Date

Buy ConvaTec 2 July 2026

Europe Reuters Bloomberg Rating Buy

United Kingdom CTEC.L CTEC LN Price target (GBX) 315.0 Price at 1 Jul 26 218.2

52-week range 288.4 – 194.0

Healthcare & Medical

Devices Valuation & Risks

Medical Devices

Sales briefing feedback – H2 delivery remains

credible KaneResearchSlutzkin,AnalystCFA

+44-20-754-54624

Summary

Following a sales briefing with Convatec's CFO and IR today, we remain of the

view that FY26 guidance is achievable despite a softer H1. While the implied H2

acceleration is larger than in recent years, management outlined several tangible

drivers to support the step up, including a stronger mix from higher-margin

Infusion Care volumes, easing InnovaMatrix headwinds, and ongoing

simplification & cost-control initiatives. The meeting also reinforced growing

confidence in the product pipeline, particularly ConvaNiox. The shares have

recovered of late, but at c.10x EV/EBITDA we continue to believe the valuation

discounts a degree of execution risk, leaving an attractive risk/reward if

management delivers on its H2 objectives and pipeline momentum continues to

build. Following the meeting, we formalize our H1 estimates, resulting in only a

very minor (c.-1%) change to our FY26 forecasts.

Investment case

Convatec is a stronger business than it was at IPO, yet the shares continue to

trade below IPO levels and at c.10x EV/EBITDA despite materially higher

investment behind innovation, manufacturing capacity and the product portfolio.

While the recent trading update increases reliance on a stronger H2, we believe

current valuation already discounts a significant degree of delivery risk. In our