Last checked at (Sharecast News) - RBC Capital Markets downgraded its stance on shares of medical products and technologies company ConvaTec to 'sector perform' from 'outperform' on Monday, cutting the price target to 197p from 210p following recent share price strength.
The bank noted that the stock us up 38% in the past six months and advised investors to take profits after a "strong" third quarter.
RBC said the company's third-quarter results drove outperformance of the shares from a low base, with the group's Q3 organic growth the highest in three years and all divisions showing good growth.
However, it noted that ConvaTec cautioned that the fourth quarter will be tougher.
"Tailwinds in Q3 (easy comps and distributor inventory movements) are not expected to repeat, while management expects that Q4 will see some impact from SKU rationalisation, destocking and ID division lumpiness," it said.
At 1040 GMT, the shares were down 1.2% at 190.05p.
30 Jul 2021 07:29
ConvaTec confident despite margin pressures
(Sharecast News) - Medical products company ConvaTec reported "strong" revenue growth ahead of expectations for its first half on Friday, with organic growth at 7.4%, or 7.0% on a constant currency basis to $1.01bn, with growth coming in at 11.0% on a reported basis.
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