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Q4 slightly above, and a welcome SMR order

HMS Networks (Buy, TP: SEK630.00) - US cheer eases balance sheet fear

The Q4 results provided a strong start to our 2025e earnings momentum case: 1) 23% order beat to Visible Alpha consensus, as organic orders grew YOY for the first time in 10 quarters; 2) the disputed Red Lion acquisition shows promise for US growth; 3) margin resilience demonstrated its quality characteristics; and 4) cash flows were strong, and accelerated actions to de-risk the balance sheet. We gain more confidence in our 2025 forecast for 93% adj. EPS growth YOY. We have raised our 2025e EBIT by 4% (16% above consensus) and our target price to SEK630 (600). BUY reiterated.

Getinge (Buy, TP: SEK255.00) - Strong finish to 2024

Q4 earnings were stronger than expected, and YOY organic growth was 9.2% for sales and 7.4% for order intake, well above consensus. The recently acquired Paragonix is performing well, with 65% reported growth YOY. Getinge will phase out Surgical Perfusion over 2025–2026, which should have a minor positive effect on the adj. EBITA margin in 2025e (potentially larger effect in the coming years). We reiterate our BUY and have raised our target price to SEK255 (245).

Hexpol (Hold, TP: SEK108.00) - Seasonal headwinds

Q4 was weak overall, driven by the surprisingly soft gross margin in the quarter, which was seemingly due to seasonality/calendar effects that hit mix and costs. We maintain our cautious view on automotive manufacturing, and have become more concerned about gross margins. We have cut our adj. EBIT by c4% for 2025e, while 2026e is broadly unchanged. We reiterate our HOLD, but have lowered our target price to SEK108 (112), owing to our estimate cuts.