After gaining elevation to the FTSE 100 in last week’s quarterly reshuffle, colostomy bag maker ConvaTec (LON:CTEC) got some more good news today as broker Deutsche Bank started coverage on the stock with a buy rating.
The broker has set a 275p price target on the stock, which only floated on the main market in London at the end of October at an initial price of 225p.
In lunchtime trading today, ConvaTec shares were 0.75p higher at 235.75p.
Deutsche said the firm, which is a global medical products company focused on therapies for chronic conditions, enjoys leading positions across all of its franchises.
In a note to clients, it said: “We expect sales and earnings growth to accelerate as the turnaround in OC (Ostomy Care) continues, other franchises appear in good shape, and margins expand due to its margin improvement program.”
The broker concluded that ConvaTec shares look “good value.”