ConvaTec Group PLC
CTEC: XLON (GBR)
Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
---|---|---|---|
GBX 238.00 | Glnxbf | Cvmndgq |
We're Reducing ConvaTec's Uncertainty Rating, but Our Fair Value Estimate Is Unchanged
Business Strategy and Outlook
Since its initial public offering, ConvaTec has followed a familiar playbook to press its advantage in advanced wound care and to enhance its ostomy business. By and large, we like ConvaTec’s businesses that focus on chronic care, which translates into an ongoing stream of revenue. However, the company has lagged significantly behind its key competitor, Coloplast. From our perspective, there is plenty of opportunity for ConvaTec to remedy the situation, but its ability to execute hinges greatly on new management.