November 2, 2017 / 11:39 AM / a year ago

Shares in Coloplast plummet after new strategy disappoints

Nov 2 (Reuters) - Shares in Danish healthcare products maker Coloplast fell more than 10 percent on Thursday, after the company gave up its long-term target to improve its EBIT margin every year.

The long-term EBIT margin guidance was changed from a yearly 50-100 basis point improvement, to a guidance of delivering an EBIT margin of more than 30 percent at constant currencies, the company said in its fourth-quarter announcement.

“The target is a very bad thing to pull out. It shows they will be using more money to grow aggressively, and that is what the investors are reacting negatively to,” analyst Michael Friis Jorgensen from Alm. Brand Bank said. (Reporting by Julie Astrid Thomsen; Editing by Jacob Gronholt-Pedersen and David Evans)

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