JPMorgan upgrades ConvaTec to 'overweight'

The bank said the revision of 2021 guidance at the first-half results understandably led to some concerns over the trajectory of margins, with consensus now forecasting an underlying contraction in 2022.

"We see this as an overreaction, and we are comfortable forecasting a circa 20% operating margin in 2022 (consensus at around 19.2%)," it said.

"Longer term, the potential of the business does not look to be reflected in the current price. We see the weakness post H1 results as offering an attractive entry point for a longer-term holding as the credibility continues to grow of the turnaround on the topline and margin."

At 0940 BST, the shares were up 1.4% at 225.30p.