Danske Bank changes Coloplast recommendation to "buy"

Danske Bank expects Coloplast to show good growth in adjusted operating profit of 12-16% in the third and fourth quarters of the fiscal year 2023/24, compared to 3-7% in the first half of the year.
Photo: Coloplast / Pr
Photo: Coloplast / Pr
by MARKETWIRE ‎

Coloplast has had its recommendation raised to ”buy” by Danske Bank, which expects a strong end to the year. The bank sees potential in a possible reimbursement agreement in the US.

The price target is also raised to DKK 985 (USD 143) from DKK 910 (USD 132), the bank’s report reads.

Danske Bank expects Coloplast to show good growth in adjusted operating profit (EBIT) of 12-16% in the third and fourth quarters of the fiscal year 2023/24 compared to 3-7% in the first half.

At the same time, the bank expects adjusted EBIT growth of 14% in 2024/25, which starts on October 1, compared to 9% in the current financial year.

In addition, a potential catalyst for earnings comes in the form of a separate reimbursement agreement in the US for Coloplast’s coated catheters.

This has the ”potential to lift the group’s EBIT estimates in the medium and long term by more than 5%.”

”We believe that investor awareness and understanding of the proposal are still low, but expect both to increase with an expected update of the proposal in the coming months,” Danske Bank writes.

The Coloplast share rose to the top of the C25 index on Wednesday with a plus of 2.2% to DKK 869 (USD 126).

English edit: Catherine Brett

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