Getinge AB: 1 director

A director at Getinge AB bought 20,000 shares at 179.780SEK and the significance rating of the trade was 58/100. 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 s...

Getinge (Buy, TP: SEK245.00) - Soft earnings, but strong orders

Earnings were softer than expected in Q3, but order intake was c3% above expectations with organic growth of c7.4% YOY. Sales were flat YOY. Q4 should see a lot of deliveries (as is typical), but this should already be priced in. We reiterate our BUY but have trimmed our target price to SEK245 (250).

Cautious margin outlook mid-term

Weak on earnings but good order intake

Quality issues holding back growth

Q3e: Low growth and margin pressure due to HLS/PLS. Adj. EBITA revised down 2.0% in '24e, and 0.1-0.6% for '25e-'26e. Q3 '24e due 18 October at 08.00am CET.

Positive US hospital capex outlook for H2'24

Getinge (Buy, TP: SEK250.00) - We expect a good Q3

The Paragonix Technologies acquisition within organ transplantation has been consolidated, we expect the underlying Life Science market to have stabilised in China (not yet back in growth mode), and we forecast decent Q3 earnings. We reiterate our BUY, with a raised target price of SEK250 (240) on our estimate changes.

US acquisition into new sub-segment

ACT saves the quarter

Earnings beat in Q2 driven by ACT. '24e-'26e adj. EBITA up 1.0-3.6%. HOLD maintained, TP up to SEK 200 (187).

Getinge (Buy, TP: SEK240.00) - Solid Q2 report

Q2 earnings were 5% above consensus on the top line, and adj. EBITA was 18% above. The beat was due to Acute Care Therapies (ACT), as Surgical Workflows (SW) and Life Science (LS) sales were slightly softer and adj. EBITA in line or slightly below consensus. The product mix was positive, with a larger proportion of consumable sales than expected, which is usually beneficial for margin growth. We reiterate our BUY and have increased our target price to SEK240 (225) on our revised forecasts.

Earnings beat driven by ACT

Too early to tell in Q2e

Q2e: Good sales development but soft on margins. Adj. EBITA revised down 3.5-6.5% for '24e-'26e. Q2'24e due 18 July at 08.00am CET.

Getinge (Buy, TP: SEK225.00) - Q2 likely to be soft

Ahead of the Q2 results (due at 08:00 CET on 18 July), we expect earnings below consensus, likely reflecting the recent FDA communication related to the cardiac assist products in the US and related increased operating expenses. In addition, we do not expect the Life Science area to have seen a rebound yet. In Surgical Workflow, we believe the sales mix will be negative for margins. Overall, we reiterate our BUY, but have lowered our target price to SEK225 (240).

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).

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)

New financial targets and business update

Getinge (Buy, TP: SEK255.00) - Upgraded to BUY after Q1 beat

Q1 earnings were stronger than we expected, with no negative surprises. We believe consensus for the coming years looks realistic and that Getinge’s valuation (despite the recent share price rise) looks attractive. Thus, we have upgraded to BUY (HOLD) and have raised our target price to SEK255 (210).

Getinge (Hold, TP: SEK210.00) - More of the same

We expect Q1 revenues of cSEK7.7bn and an adj. EBITA margin of c9.8% – basically in line with consensus. Given the issues in Getinge, with packaging in ACT seemingly solved later than previously assumed, it is fair to assume the negative impact will continue into Q1 and Q2 at least. We reiterate our HOLD and SEK210 target price. The Q1 report is due at 08:00 CET on 22 April.

Getinge (Hold, TP: SEK210.00) - Limited visibility on 2024

Getinge reported weaker than expected Q4 earnings. The guidance for 2024 related only to sales (and sales was the only bright spot in the Q4 report). Thus, the company left the market in the dark, to a large extent, as to the margin trend for 2024. In Q4, the gross margin missed consensus by c270bp and the adj. EBITA margin by c180bp. The quality issues within cardiopulmonary will most likely not be resolved until H2. We reiterate our HOLD but have cut our target price to SEK210 (225).

Getinge (Hold, TP: SEK225.00) - Some margin pressure in LS

We expect decent Q4 earnings, but with margin pressure in Life Science (LS) due to the addition of High Purity New England (HPNE) and good growth in its (lower-margin) steriliser operation. We expect Getinge’s 2024 guidance to be in line with 2023 (i.e. organic growth of 3–5%) and a medium-term guidance update later in H1. We reiterate our HOLD, but have increased our target price to SEK225 (215).