Elekta (Hold, TP: SEK69.00) - Still in ‘wait and see’ mode

During its Q1 call, Elekta indicated that H1 would be weaker than H2, and we believe this is reflected by consensus. For Q2, we forecast sales growth of c-5% YOY and organic growth of c-1% YOY. We expect order intake of cSEK4.9bn, broadly in line with consensus, and that the book-to-bill in Q2 should remain well above 1x. We are still cautious regarding Elekta’s longer-term performance, and reiterate our HOLD, while we have lowered our target price to SEK69 (76).

Valuation update

In this note, we show updated valuation statistics for the E&P sector

One more slow quarter before growth returns

The weekly navigator

From the past week, we highlight: 1) Kinnevik seeks a buyback mandate and proposes two new board members ahead of its EGM; 2) we met VEF’s and Creditas’ CEOs in Stockholm; and 3) Flerie is set to present at our Healthcare Conference in Oslo next week.

Star Bulk (Hold, TP: USD20.20) - Coming challenges mostly priced in

We still see downward pressure on rates and asset values due to the imbalance between China’s underlying raw materials demand and its imports. On our 2025e spot rates and historical valuation multiples, we see 23% downside risk to current 5-year-old Capesize values, and even more for its Supramaxes. Still, we find the share price should be covered even in the event of a 25% drop in asset values. Hence, we have upgraded to HOLD (SELL) and raised our target price to USD20.2 (19.3).

Subsea 7 (Buy, TP: NOK260.00) - All eyes on 2025 guidance

We are in line with consensus on Q3e adj. EBITDA and expect 2025 revenue guidance to be the key focus (margin guidance already provided). Our 2025e revenue of USD7.1bn is in line with consensus, with YOY growth supported by an already-secured backlog (69% backlog coverage versus 55% historically), higher dayrates for its PLSVs, and two new fleet additions in 2025. We reiterate our BUY and NOK260 target price.