- Convatec Group PLC has updated its full-year organic revenue growth forecast to a range of +6% to +6.5%, slightly narrowing it from the previous +5.5% to +7% range.
- The company still anticipates an adjusted operating margin between 22% and 22.5% for the year, with the current estimate at 22.4%.
- Year-to-date organic revenue growth is reported at 6.3%.
- Convatec is confident in meeting its financial targets for the fiscal year 2025.
- They project continued double-digit adjusted EPS growth into fiscal year 2026.
- The company expects further expansion of the adjusted operating margin in 2026, regardless of the regulatory outcome for InnovaMatrix.
- Medium-term targets include 5-7% organic revenue growth, sustained double-digit adjusted EPS growth, and achieving an operating margin in the mid-20s percentage range by 2026 or 2027.
- Market sentiment is positive, with 14 buy ratings, 3 holds, and no sell recommendations.
A look at Convatec Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 3 | |
| Growth | 5 | |
| Resilience | 3 | |
| Momentum | 2 | |
| OVERALL SMART SCORE | 3.0 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Convatec, a manufacturer of medical and surgical equipment, is set to see promising long-term growth ahead based on the Smartkarma Smart Scores analysis. The company has scored high in Growth, indicating a positive trajectory for expansion and development. With a strong focus on innovation and market penetration, Convatec is positioned to capitalize on emerging opportunities in the healthcare industry.
While Convatec shines in Growth, its overall outlook is complemented by respectable scores in Dividend and Resilience. The company’s ability to maintain dividends and withstand market fluctuations showcases a sense of stability amidst potential challenges. However, there is room for improvement in areas like Value and Momentum, where the scores suggest potential areas for enhancement to further solidify Convatec‘s standing in the market.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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