DnB Markets - Elekta AB Class B (EKTA B) Elekta (Hold, TP: SEK90.00) - Soft Q2 gross margin

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DnB Markets

Patrik Ling

EUR 92.48 For Business Accounts Only

Elekta (Hold, TP: SEK90.00) - Soft Q2 gross margin

Reported Q2 earnings overall were in line or better than our forecast. The earnings beat (c7% above consensus on adj. EBIT and 3% above our estimate) was driven by lower operating expenses, with the largest deviation seen in R&D expenses, where the capitalisation of R&D costs was above our forecast. The gross margin missed our estimate by 220bp and consensus by 230bp. Order intake was in line with consensus but c3% below our forecast. We reiterate our HOLD but have trimmed our target price to SEK90 (92).

30/11/2023 1 EN

Underlying

Elekta AB Class B

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.

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SE0000163628 Nasdaq Nordic Stockholm Sweden

Provider

DnB Markets

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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Analysts

Patrik Ling

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Elekta AB: 1 director

A director at Elekta AB bought 3,150 shares at 76.860SEK and the significance rating of the trade was 68/100. Is that information sufficient for you to make an investment decision? This report gives details of those trades and adds context and analysis to them such that you can judge whether these trading decisions are ones worth following. Included in the report is a detailed share price chart which plots discretionary trades by all the company's directors over the last two years clearly showing Close periods where trading activity is restricted under listing rules. The names of board mem...

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DnB Markets

Elekta (Hold, TP: SEK82.00) - A soft quarter

Q3 earnings were softer than we and the market expected. The weak order intake stood out, while strong cash flow was the bright spot in the report. Order intake (c14% below our forecast and consensus) remains hampered by still-poor performance in APAC (mainly China). EMEA was also weak, but on very challenging comparables. Overall, the company was optimistic that Q4 would be in line with last year, bolstering the share price. We reiterate our HOLD, but have trimmed our target price to SEK82 (SEK83).

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February 29, 2024 February 29, 2024 1 EN

DnB Markets

Elekta (Hold, TP: SEK83.00) - Still on the sidelines

After a disappointing Q2, we forecast Q3 2023/24 to show an improvement (results due at 07:30 CET on 29 February), although we still expect a soft quarter, with declining order intake YOY. Overall, we have made some negative revisions to our forecasts ahead of the report, and reiterate our HOLD, but have lowered our target price to SEK83 (90).

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February 22, 2024 February 22, 2024 1 EN

Nokian Tyres (Hold, TP: EUR9.00) - Soft Q1, with or without setbacks

The Q1 results were below our expectations, even after adjusting for the negatives on the group profit from the political strikes in Finland and the Red Sea conflict. On a positive note, the PCT price/mix was guided to hold up well, partly offsetting our revised lower sales expectations, while the Romanian factory appears to be ramping up on schedule. We reiterate our HOLD but have cut our target price to EUR9.0 (9.5), after lowering our 2024–2026e clean EBIT by c6% on average.

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Aurore Tigerschiöld

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Lyko Group (Sell, TP: SEK95.00) - Stretched balance sheet

Following the Q1 report, we believe Lyko will not only have to make more substantial progress in balancing growth and cost control, but also consider new funding options more seriously. With financial expenses eating up earnings, its current debt position, and stretched balance sheet (net debt/EBITDA c4.6x), we have downgraded to SELL (HOLD) and cut our target price to SEK95 (128).

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Emil Jonsson

Emil Jonsson

Resurs Holding (Buy, TP: SEK18.00) - Resur-recting the case

The market appears to be pricing in credit losses remaining high for many years, but we see the potential for declines starting in mid-2024, with early positive signs in March. We also find it likely that margins will be stable from here, which is not reflected in consensus. At a P/E of 3–4x for 2025e, we see good risk/reward. We have raised our 2025–2026e EPS by 3–7%, our target price to SEK18 (15), and have upgraded to BUY (HOLD).

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Elekta (Hold, TP: SEK90.00) - Soft Q2 gross margin

Elekta AB: 1 director

Elekta (Hold, TP: SEK82.00) - A soft quarter

Elekta (Hold, TP: SEK83.00) - Still on the sidelines

Nokian Tyres (Hold, TP: EUR9.00) - Soft Q1, with or without setbacks

Lyko Group (Sell, TP: SEK95.00) - Stretched balance sheet

Resurs Holding (Buy, TP: SEK18.00) - Resur-recting the case

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