ConvaTec Demonstrates Progress in First Half; Our Fair Value Estimate Is Unchanged

ConvaTec’s interim report for the first half of this year featured reported financial results that have the firm closely tracking our full-year expectations, and we’re leaving our fair value estimate unchanged. We’re pleased to see year-to-date organic revenue growth at 6%, which is a touch faster than the mid-single-digit level that has characterized ConvaTec’s markets. Operating margin is also consistent with our full-year estimates. We remain comfortable with ConvaTec’s narrow economic moat, which rests on intangible assets and end-patient switching costs.