Getinge (Buy, TP: SEK240.00) - Uncertainty regarding FDA issues

Getinge yesterday hosted a meeting to discuss its new long-term financial targets, where it also commented on the recent FDA communication to healthcare facilities in the US advising users to transition away from Getinge’s equipment in cardiopulmonary and cardiac assist. However, the company has limited visibility on the size of the financial impact. We reiterate our BUY, but have lowered our target price to SEK240 (255).

PhotoCure (Buy, TP: NOK87.00) - Solid start to the year

A 3% outperformance on Q1 sales versus our estimate and consensus together with lower operating expenses helped EBITDA beat our forecast by 193% (but cNOK5m in absolute terms). Management reiterated its guidance for 6–9% organic product sales growth in 2024 and positive EBITDA (excluding business development costs). We reiterate our BUY and NOK87 target price.

Mounting concerns

Increased uncertainty of earnings development. Adj. EBITA revised down 2.3%-4.5% for '24e-'26e. HOLD maintained, TP down to SEK 198 (225)

Flattening revenues AND bulky valuation

Q2 largely inline with pre-announcement. Q2 was the peak for growth, H2 revenues flattening out. At 71x P/E Ambu needs time to grow into its bulky valuation.

Ambu (Buy, TP: DKK138.00) - Guidance still looks conservative

Having pre-released Q2 headline numbers and increased the 2024 guidance in mid-April, today’s detailed results provided few surprises. However, the important Endoscopy sales were slightly better than expected, and we find today’s guidance for >15% organic growth YOY (previously c15%) for that part of company still conservative, with potential for a further rise with the Q3 results. We reiterate our BUY and have increased our target price to DKK138 (130).

New financial targets and business update

Good start but sales commission still too high

Solid start in Q1. Higher sales commissions weigh down on EBIT in '25e-'26e. Fair value revised down to SEK 8-15 (9-16).

Solid Q1

PhotoCure (Buy, TP: NOK87.00) - Focusing on underlying business

We have made limited estimate changes ahead of the Q1 results (due at 08:00 CET on 15 May), and believe Photocure is moving forward in areas within its control. YOY comparables are affected by Q1 2023 being the last quarter with flex sales in the US. Its partner, Asieris, has filed for marketing approval of Cevira in China; if accepted for review, we believe Photocure would be in line for another milestone payment in Q2. We reiterate our BUY and NOK87 target price.

Mixed emotions about Kerecis

Q2 EBIT was 3-4% below expectations. Kerecis goodwill writedown is a troublesome read. Too expensive, too-low EPS growth and too many questions: SELL.

Coloplast (Buy, TP: DKK1050.00) - Next up: ‘Meet the Management’

Q2 organic growth of 7.5% YOY was in line with our forecast and consensus, but the EBIT margin (b.s.i.) of 27.2% missed. Coloplast revised its 2023/24 reported revenue growth guidance to 10–11% (previously c11%) on FX, but kept its c8% organic growth and 27–28% EBIT margin (b.s.i.) guidance. At the upcoming ‘Meet the Management’ event, we expect an update on its clinical performance programme and a deep-dive into Kerecis. We reiterate our BUY and DKK1,050 target price.

Steady progress in Q1e

Q1'24 results due 14 May. 207% growth y-o-y, but limited sequential growth. EBIT revised up 2% for '24e-'26e due to FX.

ODDO BHF SECURITIES MORNING NEWS – DETAILED COMMENTS 05/07/2024

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ODDO BHF SECURITIES MORNING NEWS – COMMENTAIRES DETAILLES 07/05/2024

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Coloplast : Q2 review – Top and bottom line a slight miss, focus on LC...

>Q2 review – Miss on top and bottom line - Coloplast’s Q2 2024 revenues of DKK 6,586m (+8.7% y-o-y) were -1%/-2% vs ODDO BHF/consensus, driven by organic growth of 8% (7.3%/7.6% ODDO BHF/consensus). External growth contributed to the tune of 4% and forex created a headwind of 300bp. Coloplast achieved an EBIT of DKK 1,772m (+7.3% y-o-y, margin 26.9%), which was -3%/-4% vs expectations. Profitability was supported by operating leverage and efficiency savings but impact...

Weak margin and lack of guidance upgrade