Convatec shares recover as UBS upgrades colostomy bag maker

 
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Shares are bouncing back up after an analyst upgrade (Source: Getty)

FTSE 100 medical supplies maker Convatec has bounced back today after its shares hit a record low on Friday.

Shares in the colostomy bag manufacturer led the blue chip risers, climbing almost 5.9 per cent to 192.7p.

Renewed fears that it could lose out to Danish rival Coloplast pushed the price down to a record low on Friday, closing at 182p. Shares were already well below the 2016 placing price following a profit warning in October.

But analysts at UBS issued a note to clients this morning upgrading the company to a "buy" rating, calling the current pricing "overly bearish".

"ConvaTec is still improving the demand for their Ostomy products even if they cannot supply this demand at present, and whilst the benefits of the margin improvement program are delayed, and may cost more to deliver, they are not impaired in our view."

The company's directors have themselves become buyers since the stock took a tumble. Chairman Sir Christopher Gent snapped up more stock after October's profit warning, while CFO Frank Schulkes put more than £200,000 into buying shares last week.

Convatec only joined the FTSE 100 a year ago, just a month after listing.

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