Coloplast Delivered Decent Fiscal Second-Quarter Results; No Change to Our Fair Value Estimate

Coloplast delivered fiscal second-quarter results that featured progress toward normalized, prepandemic dynamics in the U.S. However, the omicron variant and ongoing lockdowns in China have put slight crimp into management’s expectations for the year. Nonetheless, the chronic care business remains largely steady, and we’re standing behind our fair value estimate as we saw little in the quarter to change our estimates for the full year. Coloplast continues to launch new products that lead to long adoption cycles, which gives us confidence that the firm’s intangible assets supporting its narrow economic moat remain in good shape.