DnB Markets - Getinge AB Class B (GETI B) Getinge (Hold, TP: SEK200.00) - Surgical Workflows surprise

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DnB Markets

Patrik Ling

EUR 92.81 For Business Accounts Only

Getinge (Hold, TP: SEK200.00) - Surgical Workflows surprise

Getinge reported stronger than expected Q2 earnings. Sales were in line with our forecast but EBITA beat our estimate by c30%. Surgical Workflow (SW) was the big surprise: despite sales dropping 8%, the margin was flat. Sales of cardiovascular consumables seem to have bottomed out, since June sales were higher than May. The Covid-19 uncertainty is still large and whether the margin improvement in SW is sustainable is still unknown. We reiterate our HOLD but have lifted our target price to SEK200 (SEK190) following our forecast adjustments.

16/07/2020 16 EN

Underlying

Getinge AB Class B

Getinge is engaged in three business areas: Medical Systems, Extended Care and Infection Control. Medical System's product range includes surgical tables, surgical lamps, telemedicine, perfusion products, instruments for bypass operations, ventilators, anesthesia systems, synthetic vascular implants and stents. Extended Care's product range includes bathing and shower solutions, lifting equipment and mattresses for the treatment and prevention of pressure ulcers, as well as service and consulting. Infection Control's product range comprises disinfectors, sterilizers, information technology systems and related equipment, as well as service and consulting.

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SE0000202624 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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DnB Markets

Getinge (Hold, TP: SEK210.00) - More of the same

We expect Q1 revenues of cSEK7.7bn and an adj. EBITA margin of c9.8% – basically in line with consensus. Given the issues in Getinge, with packaging in ACT seemingly solved later than previously assumed, it is fair to assume the negative impact will continue into Q1 and Q2 at least. We reiterate our HOLD and SEK210 target price. The Q1 report is due at 08:00 CET on 22 April.

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March 26, 2024 March 26, 2024 1 EN

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Getinge (Hold, TP: SEK210.00) - Limited visibility on 2024

Getinge reported weaker than expected Q4 earnings. The guidance for 2024 related only to sales (and sales was the only bright spot in the Q4 report). Thus, the company left the market in the dark, to a large extent, as to the margin trend for 2024. In Q4, the gross margin missed consensus by c270bp and the adj. EBITA margin by c180bp. The quality issues within cardiopulmonary will most likely not be resolved until H2. We reiterate our HOLD but have cut our target price to SEK210 (225).

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February 1, 2024 February 1, 2024 1 EN

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Getinge (Hold, TP: SEK225.00) - Some margin pressure in LS

We expect decent Q4 earnings, but with margin pressure in Life Science (LS) due to the addition of High Purity New England (HPNE) and good growth in its (lower-margin) steriliser operation. We expect Getinge’s 2024 guidance to be in line with 2023 (i.e. organic growth of 3–5%) and a medium-term guidance update later in H1. We reiterate our HOLD, but have increased our target price to SEK225 (215).

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January 9, 2024 January 9, 2024 1 EN

Avanza Bank (Hold, TP: SEK257.00) - Understated activity resurgence

We expect rising stock markets and customer activity to offset much of the NII headwind from looming rate cuts, and to drive positive consensus earnings revisions for 2024–2025e. Our 2024–2026 EPS forecasts are broadly unchanged, leaving the stock trading at a 2025e P/E of c17x. With 10% upside potential to our unchanged SEK257 target price, we reiterate our HOLD.

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Steffen Evjen

Steffen Evjen

Solid NCS production in March

The preliminary Norwegian Offshore Directorate (NOD) production figures for the NCS in March showed strong liquids production of 2,086kboed (~4% above forecast) and gas production of 365mcm/d (broadly in line). Overall production was up 2.7% MOM. On a company level, production was down MOM for most names in February; Aker BP and Equinor were hit by reduced production from Johan Sverdrup, while Vår Energi was hampered by downtime at Fenja.

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Steffen Evjen

Steffen Evjen

Weekly news, topics & discussion

This week, we published a Q1 preview on Equinor. We believe its share price upswing since its CMU is mainly attributable to strong performance by its peer group. The stock is trading at a 15% premium to peers, in line with its historical average. In other news, Vår Energi reported Q1 production in line with our estimates, with realised prices slightly above. We expect focus in the full Q1 report (due on 23 April) to be on Balder X and Johan Castberg. Also, according to news sources, Equinor’s challenging Wisting project looks set to move forward.

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18h / 43m 18h / 43m 1 EN

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Getinge (Hold, TP: SEK200.00) - Surgical Workflows surprise

Getinge (Hold, TP: SEK210.00) - More of the same

Getinge (Hold, TP: SEK210.00) - Limited visibility on 2024

Getinge (Hold, TP: SEK225.00) - Some margin pressure in LS

Avanza Bank (Hold, TP: SEK257.00) - Understated activity resurgence

Solid NCS production in March

Weekly news, topics & discussion

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