Coloplast Delivers Strong Fiscal Third Quarter; Our Fair Value Estimate Is Unchanged

Coloplast posted strong fiscal third-quarter results that demonstrated some recovery from the COVID-19 surge that had hampered performance in the previous quarter. The firm remains on track to meet our full-year expectations, and after making minor adjustments for foreign exchange tailwinds and our projections for the newly acquired Atos Medical business, we’re leaving our fair value estimate intact. The firm has largely seen growth in new patients return to prepandemic levels across the majority of its geographic markets, with the notable exception of China. The integration of Atos has been relatively seamless thus far and underscores our confidence in Coloplast’s impressive operations. Further, the addition of this range of voice and respiratory care devices offers Coloplast new markets in which it can flex its ability to introduce thoughtful innovation, in our view. We think this situation reinforces the firm’s narrow economic moat.