ConvaTec (CTEC) has stayed resolutely under the radar in recent years, despite building up a portfolio of products that has ultimately propelled it into the FTSE 100, following a successful IPO in 2016.
Tip style
Value
Risk rating
Low
Timescale
Medium Term
Bull points
- Expanding margins
- Signs that destocking is ending
- Medicare uncertainty removed
- Defensive portfolio of products
Bear points
- Heavy regulatory burden
- Supplier risk
- Highly competitive field
To be fair, the post-pandemic environment for medical products (other than pharmaceuticals) has been tricky at best. This is why evidence that destocking – which has dogged the sector since 2021 – may have come to an end sparked euphoria among investors at the time of the company’s last trading update.