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 show...

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...

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).

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 SE...

Elekta (Hold, TP: SEK92.00) - We expect an undramatic report

For the Q2 report, we expect the market to focus on the gross margin trend and order intake. Management stated with the Q1 report the gross margin would come down QOQ, but the question is by how much, as the sales mix looks to have changed for the worse. Comments on the implications of the ViewRay bankruptcy should also be in focus, as well as the possibility of Elekta converting some of its order backlog to Unity systems instead. We reiterate our HOLD, but have raised our target price to SEK92 ...

Northern Lights

Elekta (Hold, TP: SEK85.00) - Strong earnings, weak order intake

Elekta reported a stronger than expected Q1, with sales c2% above our forecast and adj. EBIT c81% above. The earnings beat was mainly driven by the gross margin, which was c400bp above our forecast, but which contained a positive one-off of 130bp. Order intake was weak, down 7% YOY organically and c8% below our estimate and consensus. Operating expenses were in line with our forecast. Overall, this was a strong quarter, and management sounded optimistic about the rest of the year. We reiterate o...

Elekta (Hold, TP: SEK85.00) - Q1 usually a small quarter

Elekta is set to report Q1 2023/24 earnings at 07:30 CET on 24 August. The first quarter in Elekta’s fiscal year is normally the smallest (due to the vacation period during the summer). Items worth watching are comments regarding demand in the healthcare systems for capital equipment as well as order intake, and whether Elekta has adjusted its backlog due to the GenesisCare Chapter 11 process in the US. We reiterate our HOLD and SEK85 target price.

Northern Lights

Elekta (Hold, TP: SEK85.00) - 2023 CMD – no major news

Elekta hosted a CMD at its facility in Crawley outside London on 20 May. It presented details of progress in its longer-term agenda (ACCESS2025), gave indications about new products, and discussed overall market growth. There was no major news, in our view, and we reiterate our forecasts, HOLD, and SEK85 target price.

Northern Lights

Elekta (Hold, TP: SEK85.00) - Margin guidance uncertain

Q4 earnings beat our estimate and consensus, driven by higher sales (mostly due to FX tailwinds) and lower operating expenses than we expected. Elekta cut its sales growth guidance to >7% p.a. for the coming years and adjusted its margin guidance. Management still says the EBIT margin will increase, but from a lower base of 10.3% in 2022/23 versus the previous base of 13.9% in 2020/21. We reiterate our HOLD and SEK85 target price.

Elekta (Hold, TP: SEK85.00) - Q4e likely to be on the soft side

As Elekta mentioned with the Q3 report, its Q4 gross margin will likely be hurt by the product mix and geographical sales mix. We believe consensus is reasonable on sales and order intake but slightly high on margins for Q4. Some of Elekta’s logistical challenges have improved and are likely to continue to do so despite persistent inflationary headwinds. We reiterate our HOLD and SEK85 target price.

Northern Lights

Northern Lights

Elekta (Hold, TP: SEK85.00) - Q3 beat

Elekta’s Q3 report was stronger than expected, beating our forecast and consensus on all P&L lines and order intake. Sales were above our estimate by 6%, adj. EBIT by 27%, and order intake by 7%. In our view, some of the headwinds seen in previous quarters will remain, while others (such as high logistics costs) are easing. We reiterate our HOLD but have raised our target price to SEK85 (80) based on our estimate changes.

Elekta (Buy, TP: SEK75.00) - Soft short-term guidance

Elekta reported softer than forecast Q2 earnings despite consensus coming down beforehand. The short-term outlook (Q3–Q4) was also soft and rather gloomy, implying an improvement in the underlying market conditions was unlikely until Q4 at the earliest. We reiterate our BUY as we still see long-term value, but have cut our target price to SEK75 (85).

Elekta - Another margin disappointment

Sales was 1% better and Orders 6% better than cons. Soft profitability as adj. EBIT missed cons by 14% Estimates down 4-6%, share down low single-digits

Elekta - Heads-up for report on 24 November

Elekta will report Q2 on Thursday 24 November at 07:30 CET. A conference call will follow at 10:00, dial in: SE: , UK: 3

Elekta (Buy, TP: SEK85.00) - Another challenging quarter

We believe Q2 will be another unimpressive quarter for Elekta, with a potential turnaround in H2 at the earliest. We expect the restructuring programme to have cost more in Q2 than it generated in savings. However, management has indicated that more significant savings will start to come through in H2. We reiterate our BUY and SEK85 target price.