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Investing.com - RBC Capital upgraded ConvaTec Group Plc. (LON:CTEC), a $6.7 billion medical products manufacturer with a 7% revenue growth rate, from Sector Perform to Outperform while slightly adjusting its price target to GBP3.15 from GBP3.20.
The medical products manufacturer’s recent share price decline represents a buying opportunity according to RBC Capital, which views the market reaction as "likely overdone" ahead of what it expects to be solid underlying revenue growth and mid-term margin improvements. The stock has shown resilience with an 18.15% year-to-date return, and according to InvestingPro, typically trades with low volatility.
RBC Capital adjusted its forecasts following ConvaTec’s first-half results and updated its outlook for 2026 and 2027, while also factoring in the company’s recently announced $300 million share buyback program.
The investment firm believes the risk-reward profile for ConvaTec is now "skewed clearly to the upside," suggesting significant potential for share appreciation from current levels.
RBC Capital noted that further clarity on reimbursement changes, expected in the fourth quarter of 2025, could serve as a positive catalyst for the medical technology company’s stock.
In other recent news, RBC Capital Markets has adjusted its rating for ConvaTec Group Plc. The firm downgraded the stock from Outperform to Sector Perform but raised the price target to GBP3.20 from GBP3.05. This decision came after RBC analysts reviewed ConvaTec’s recent four-month trading statement. The analysis led to an updated earnings per share forecast, with an increase of 1.2% for 2025 and 1.3% for 2026. Despite the increase in the price target, RBC analysts expressed that there is limited immediate upside potential for ConvaTec’s stock following its strong recent performance. These developments reflect the company’s current positioning in the market and the analyst’s reassessment of its future prospects.
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