Convatec Earnings: Solid Revenue Growth Reflects Improved Operations

Convatec’s abbreviated trading update featured solid third-quarter growth across all four product segments, and the firm remains on track to meet our full-year expectations. We’re leaving our fair value estimate unchanged. The firm has made considerable progress on operations over the last few years, and it also benefited from the highly consolidated ostomy, continence, and infusion care markets where it remains a significant competitor. Though Convatec continues to trail its main rival, wide-moat Coloplast, it has taken steps forward to introduce innovation that bolsters the intangible assets that support Convatec's narrow economic moat.