Elekta (Hold, TP: SEK69.00) - Still in ‘wait and see’ mode

During its Q1 call, Elekta indicated that H1 would be weaker than H2, and we believe this is reflected by consensus. For Q2, we forecast sales growth of c-5% YOY and organic growth of c-1% YOY. We expect order intake of cSEK4.9bn, broadly in line with consensus, and that the book-to-bill in Q2 should remain well above 1x. We are still cautious regarding Elekta’s longer-term performance, and reiterate our HOLD, while we have lowered our target price to SEK69 (76).

One more slow quarter before growth returns

Positive feedback from ASTRO

Positive US hospital capex outlook for H2'24

Elekta AB: 1 director

A director at Elekta AB sold 7,250 shares at 65.000SEK and the significance rating of the trade was 53/100. 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 showin...

Small Cap Miner – August 2024

Elekta (Hold, TP: SEK76.00) - Stronger-than-expected Q1 report

Although a seasonally weak quarter, Q1 earnings were stronger than expected: sales beat consensus by c4% (3% above our estimate), adj. EBIT by 17% (6% above) and order intake by 9% (1% above). Overall guidance remained for a weaker H1 YOY and a stronger H2, and for the year, organic sales growth in the mid-single digits and an improved adj. EBIT margin YOY. We reiterate our HOLD and have raised our target price to SEK76 (74).

Expect a roll-out and pick-up in H2

Americas drive a solid beat across the board. Q2 will remain soft, but new launches and improvements to come. Adj. EBIT up 1-2% for '24/'25e-'26/'27e.

Good start to year in Q1

Slow start to the year in Q1'24/'25e

Elekta (Hold, TP: SEK74.00) - A weak quarter expected

Along with the Q4 2023/24 report, management guided that Q1 2024/25 would be weak and that a turnaround should be visible mainly in H2; we do not believe much has changed since then. After the earnings miss in Q4, our concern has been the lack of short-term visibility and as a result, we doubt that it should be much better long-term. We reiterate our HOLD but have cut our target price to SEK74 (76) ahead of the Q1 report.

Regional Morning Meeting Notes: Thursday, July 18, 2024

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Disappointing end to the year

>20% miss on EBIT in Q4. Patience is needed as H1 expected to be soft. Adj. EBIT down 9% for '24/'25e-'25/'26e. BUY.

Elekta (Hold, TP: SEK76.00) - Weak Q4 and soft guidance

Q4 sales, order intake and adj. EBIT missed consensus, while management indicated a soft start to 2024/25, and guided that it only expected gross margin improvements from the second half of the financial year. We believe investors will remain cautious until there are clear signs of an underlying improvement in earnings. We reiterate our HOLD but have cut our target price to SEK76 (90) on our estimate revisions.

Weak Q4, but China returns to growth

Small Cap Miner - May 2024

Elekta (Hold, TP: SEK90.00) - Order growth set to improve

We are broadly in line with consensus on Q4 2023/24e earnings (results due at 07:30 CET on 5 June). While order intake has been weak, we expect a rebound in APAC as tender activity in China picks up and investment stimulus packages for healthcare equipment start to take effect. We reiterate our HOLD but have raised our target price to SEK90 (82) on a stronger order trajectory.

Back to growth in orders in Q4e

Q4 '23/'24 results due 5 June. Outlook and China in focus. TP up to SEK 120 (112), BUY.

Positive news at ESTRO

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 (SEK...