ConvaTec Trimming Margin Estimates but Attractive Risk-Reward

Goldman Sachs maintains its Buy rating on ConvaTec despite trimming margin and EPS estimates by 2%, as the stock's valuation (12.8x P/E) remains attractive relative to its 15% EPS growth profile.

Key Takeaways

• 1.Goldman Sachs has trimmed its FY26-28e EBIT margin estimates by approximately 30bps, resulting in a roughly 2% cut to EBIT and EPS forecasts.
• 2.Despite the estimate cuts, the analyst maintains a Buy rating, citing an undemanding valuation (12.8x NTM P/E) that does not fully credit accelerating organic growth.
• 3.GS forecasts a 22.7% adjusted EBIT margin for FY26, which is slightly below the company's management guidance of ≥23%.

Table of Contents

• Changes to estimates
• Valuation methodology
• Key downside risks
• Disclosure Appendix
• GS Factor Profile
• M&A Rank
• Quantum
• Disclosures
• Company-specific regulatory disclosures
• Distribution of ratings/investment banking relationships
• Price target and rating history chart(s)
• Target price history table(s)
• Regulatory disclosures
• General disclosures

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