Bloomberg News

Goldman Sends Coloplast Higher With Buy Rating: Copenhagen Mover

January 31, 2013

Coloplast A/S (COLOB), the world’s largest maker of ostomy products, rose the most in 12 weeks in Copenhagen after analysts at banks, including Goldman Sachs Group Inc., recommended buying the share after yesterday’s drop.

Coloplast jumped as much as 3.5 percent, the largest increase since Nov. 7 and today’s biggest gain in the Nasdaq OMX Copenhagen 20 index (KFX). The shares rose 3.1 percent to 290 kroner at 10:13 a.m. in the Danish capital, with trading volume at 56 percent of the three-month daily average.

Coloplast shares lost 3.9 percent yesterday after it cut its sales forecast and reported net income that missed analyst estimates. Goldman raised its recommendation to buy from neutral saying Coloplast is among the three best-positioned medical technology companies in Europe. Nordea Bank AB repeated its buy rating and said the share will bounce back.

“The company has in the past disappointed the market a bit with their earnings reports only to come back strong again,” Nordea in Copenhagen said today in a note to clients. “That’s why we keep our positive view on the stock.”

The Humlebaek, Denmark-based company has beat analyst net income estimates in 17 of the last 32 quarters, according to data compiled by Bloomberg. On average, the company has exceeded estimates by 13 percent over the seven-year period and the stock has almost quadrupled in value during that time.

‘High Gear’

Coloplast yesterday lowered its full-year sales growth forecast in Danish kroner to as much as 6 percent from as much as 7 percent previously. The company kept its estimate for revenue growth in local currencies of as much as 7 percent.

“It’s important to note that the full-year sales forecast in local currencies was confirmed,” Nordea said. Sales growth will return to “a high gear in emerging markets,” in coming quarters, the bank said.

Coloplast reported net income of 617 million kroner ($112 million) for its fiscal first quarter, the three months ending Dec. 31. That missed the average estimate of 631 million kroner a Bloomberg survey of analysts.

To contact the reporter on this story: Christian Wienberg in Copenhagen at cwienberg@bloomberg.net

To contact the editor responsible for this story: Tasneem Brogger at tbrogger@bloomberg.net


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