05:57 AM EDT, 05/14/2026 (MT Newswires) -- Bernstein believes Coloplast's (COLO-B.CO) recent fiscal 2026 guidance downgrade would eliminate near-term implementation risks, even as concerns related to the midterm guidance persist.

"Coloplast's new FY 2025/26E guidance embeds some conservatism given the difficulty in predicting the evolution in Kerecis performance and the uncertainty in the Middle East. We see the new guidance as removing near-term execution risk. However, mid-term risk remains given the acceleration now needed in the out years, particularly given the current uncertainty in cost inflation. We look forward to hearing new [Chief Executive Officer] Gavin Wood's thoughts on the midterm plan once he has spent more time with the business,"according to a Wednesday note.

In a pre-release update for the fiscal second quarter published on April 23, the Danish medical device company lowered its organic growth target to between 5% and 6% at constant currencies from the previous forecast of 7%. Coloplast then affirmed this outlook in Tuesday's second-quarter earnings report, which saw revenue for the three months ended March 31 climb 6% on an organic basis to 7.08 billion Danish kroner.

Against this backdrop, the research firm updated its model for Coloplast, reducing its adjusted EPS forecasts for fiscal 2026 and 2027, respectively, by 1% and 2%. Consequently, the stock's price target fell to 450 kroner from 535 kroner, which also reflects lower market multiples for the medical technology sector.

The market-perform rating for Coloplast was maintained.