Surgical Science (Buy, TP: SEK282.00) - Set for another strong quarter

We expect Surgical Science to report 14% organic growth YOY at a 24% adjusted EBIT margin in Q2, with the highly profitable licensing revenues expanding c59% YOY. We believe the recent weaker economic outlook will have a relatively small effect on 2023e growth and have maintained our estimates of 20% organic growth with an EBITDA margin of c28%, driven by c31% growth in its key segment, Industry/OEM. We reiterate our BUY but have reduced our target price to SEK282 (288) on lower peer group multi...

Swedish Small - caps - summer 2023

Swedish Small - caps - summer 2023

Northern Lights

Surgical Science (Buy, TP: SEK288.00) - Substantial Q1 beat

Surgical Science reported strong Q1 results, with sales c20% and EBIT 64% above our estimates, primarily driven by strong growth in Educational Products and licensing sales. We have increased our 2023–2025 expectations for sales and profitability. We reiterate our BUY and have raised our target price to SEK288 (211).

Surgical Science (Buy, TP: SEK211.00) - Stable quarter ahead

We expect Surgical Science to report 13% organic growth YOY at a 20% adjusted EBIT margin in Q1, with the highly profitable licensing revenues expanding c40% YOY. We believe the recent weaker economic outlook will have a relatively small effect on 2023 growth and keep our estimates of 14% organic growth with an EBITDA margin of 27%, driven by c27% growth in its key segment, Industry/OEM. We reiterate our BUY and have raised our target price to SEK211 (206).

Surgical Science (Buy, TP: SEK211.00) - Stable quarter ahead

We expect Surgical Science to report 13% organic growth YOY at a 21% EBIT margin in Q1, with the highly profitable licensing revenues expanding c40% YOY. We believe the recent weaker economic outlook will have a relatively small effect on 2023 growth and keep our estimates of 14% organic growth with an EBITDA margin of 27%, driven by c27% growth in its key segment, Industry/OEM. We reiterate our BUY and have raised our target price to SEK211 (206).

Northern Lights

Northern Lights

Surgical Science - Initiation of coverage - Leader in medical simulati...

Surgical Science has become a leading participant in the rapidly growing niche market for medical simulation. We believe it offers interesting exposure to rapidly growing segments, and see a long runway of organic growth, with increased margins and potential upside from M&A. We initiate coverage with a BUY and SEK206 target price.