ConvaTec: Upgraded Medium-Term Outlook and ‘Accelerate’ Strategy Support Buy Rating

Analyst Aisyah Noor from Morgan Stanley assigned a Buy rating on ConvaTec and keeping the price target at p270.00.

Aisyah Noor has given his Buy rating due to a combination of factors related to ConvaTec’s upgraded medium‑term outlook and divisional momentum. The company is reaffirming its group targets while lifting growth expectations in key businesses, underpinned by stronger Ostomy performance in the U.S., resilient Continence trends outside the U.S., and an Infusion pipeline supported by Parkinson’s partnerships.

Aisyah Noor’s rating is based on the view that ConvaTec can deliver 6–8% organic revenue growth with improving margins, alongside double‑digit expansion in EPS and free cash flow over the midterm. The newly articulated “Accelerate” strategy, built around customer‑centric growth, innovation, operational execution, and a performance‑driven culture, is expected to create additional upside, including potential contributions from external innovation and M&A.

In another report released today, TipRanks – PerPlexity also upgraded the stock to a Buy with a p259.00 price target.

Based on the recent corporate insider activity of 10 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of CTEC in relation to earlier this year.