Kepler Cheuvreux has started coverage of Coloplast with a buy recommendation and a target price of DKK482. The brokerage indicated no revisions to its target price and left adjusted earnings-per-share projections for 2026 and 2027 intact.
At the time of the note, Coloplast was quoted at DKK404.40, a level that Kepler Cheuvreux says implies approximately 19.2% upside to its DKK482 target. In the firm's assessment, recent price weakness has gone further than the underlying fundamentals warrant.
Analyst Christophe Dombu characterises the market response as overly broad - suggesting investors have been extending weakness observed within the Kerecis unit to the wider Coloplast group. Kepler Cheuvreux cautions that this overlooks the durability of Coloplast's main business, which accounts for roughly 85% of total sales.
The broker highlights features of that core franchise that support its view: leading market positions, a base of recurring demand, organic growth running in the mid- to high-single-digit range, and structurally high margins. These attributes form the backbone of Kepler Cheuvreux's investment case.
Importantly, the note clarifies that the investment thesis does not depend on a sharp turnaround at Kerecis. Instead, the expected path to value is driven by the resilience of the core business and a gradual re-rating from what Kepler describes as trough valuation levels. Dombu calls present share levels "a compelling entry point into a high-quality medtech franchise."
The research team made no changes to its forward adjusted EPS estimates for 2026 or 2027, and maintained the DKK482 target price upon initiating coverage with a buy rating. Their commentary centres on valuation dynamics and the distinction between the group's dominant core operations and the Kerecis unit.
Context for investors
- The note frames the current share price as reflecting an overhang tied to Kerecis rather than the performance of Coloplast's larger core business.
- Kepler Cheuvreux positions the stock as offering meaningful upside from current levels based on durability in the company's main franchises and anticipated investor re-rating.