Elekta (Buy, TP: SEK110.00) - Margin pressure in Q4e too
Given the profit warning on 14 February, Elekta’s full Q3 2021/22 results were undramatic. However, we believe the issues it is facing (component constraints, logistics challenges and installation delays) will continue for some time; thus, we have lowered our 2021/22–2023/24 forecasts. Elekta has a history of less than perfect reporting, and we believe investors could be losing faith in the company. Despite cutting our forecasts and our target price to SEK110 (120), we reiterate our BUY.Elekta AB is a human care company providing clinical solutions for treating cancer and brain disorders. Co. develops tools and treatment planning systems for radiation therapy including brachytherapy and radiosurgery, as well as workflow improving software systems across the field of cancer care. Co. has four product areas: Elekta Neuroscience, which develops solutions for the diagnosis and treatment of neurological diseases; Elekta Oncology, which develops clinical solutions for radiation therapy, imaging systems and clinical solutions for patient positioning and immobilization; Elekta Brachytherapy, which is engaged in cancer treatment based on internal radiation; and Elekta Software.
DNB Markets is the investment banking arm of DNB Bank ASA and is focused primarily on the Nordic region, as well as internationally on niches such as global shipping, energy and related services, and seafood. DNB Markets offers services in FICC, Equities and Investment Banking advisory from offices in Oslo, Stockholm, London, Singapore and New York. Equity research coverage is offered on c250 Nordic companies. DNB was ranked no.2 in Extel Nordic Research 2017. The DNB Markets’ Credit and FICC Macro & FX Research teams are repeatedly highly rated by Prospera Nordic Institutional Investor Surveys.
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