EU tariff summary for Swedish small caps

Change of guard announced

Elekta (Hold, TP: SEK65.00) - Earnings miss and guidance cut

Elekta reported weaker earnings than we forecast and reduced its 2024/25 guidance. The company expects flat revenues (from mid-single digit growth) and lower adj. EBIT margin (from increasing margins). Order intake was strong, with c21% growth YOY driven by Elekta Evo and Elekta ONE. The share price reaction (down c9% on the reporting day) reflects the stock market’s caution’s regarding Elekta’s growth and margin progression, we believe. We reiterate our HOLD, but have cut our target price to SE...

First signs of improvements, more needed

Miss on earnings, strong orders and FCF

Elekta (Hold, TP: SEK70.00) - Focus on guidance for Q4

We are in line with consensus for Q3 and believe investors should focus on the guidance for Q4 and the full year, given the miss last year. 2024/25 is likely to be skewed towards Q4, which should be a ‘make or break’ quarter for the full year, despite the easy YOY comparable. We reiterate our HOLD and SEK70 target price.

Operational improvements needed

Small Caps, Big Ideas – December 2024

Elekta (Hold, TP: SEK70.00) - Weaker-than-expected quarter

Elekta’s Q2 earnings report was weaker than we expected, but it reiterated its 2024/25 guidance of mid-single-digit organic growth and an improved adj. EBIT margin. However, management suggested that this year (as in the past) is set to be skewed towards Q4, and this is a risk for investors, as the full-year outcome stands and falls with a single quarter (most investors remember the earnings miss in last year’s Q4). We reiterate our HOLD but have raised our target price to SEK70 (69).

Growth set to recover in H2

Soft Q2, no change in outlook

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