ConvaTec Could See More Near-Term Lumpiness as Europe Sorts Out Post-Brexit Trade

At the end of third quarter, narrow-moat ConvaTec indicated that it would likely see revenue growth for the full-year 2020 wrap up near the high end of its outlook of 2.0%-3.5%. However, considering the resurgence of the coronavirus in late 2020, we’re holding steady on our expectation for 2.1% top-line growth and leaving our fair value estimate unchanged. We have slightly revised our projections for softer performance in the advanced wound care and ostomy segments, which was offset by more robust results from the infusion sets and critical care segments.