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A FTSE hidden gem that deserves to be recognised

This under-priced medical products company is in the ascendancy having overcome destocking issues
A FTSE hidden gem that deserves to be recognisedPublished on December 5, 2024

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. 

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