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The medical technology company Elekta has brought its shareholders between hope and despair in recent years – and the title has fluctuated widely. The buyer was able to make good profits, but if it became the wrong time to buy, the losses have become huge, although they may of course be unrealized to date.
This year, the optimism was positive, as the company developed new products and first received approval from Unity in Europe, which raises great hopes. The stock has risen nearly 100%, reaching just over £ 130 this summer.
However, optimism has calmed with profit cuts and the report today has not helped. Initially, the price had dropped by more than 6%, but by lunch time it was recovering more than half of the decline.
For the quarter itself, the result is not so bad, even though the profit at the ebita level was SEK 601 million compared to analysts' expectations, which were 612. Even the order intake was slightly below expectations – they were SEK 3 670 million for the quarter compared to the 3 766 expected.
Apparently, however, there is no major deviation from market expectations, which is also reflected in the continuing price developments. And revenues have actually improved than expected, 3,330 million against 3,212 expected.
Richard Hausmann, managing director, also expresses his optimism about the immediate future of Unity, where the company expects to receive approval in the United States before the start of l & # 39; year. Previously, the company had received 32 orders on Unity and the objective is to obtain 75 orders until the first half of 2020 inclusive. Each Unity system sold represents between $ 8 and $ 10 million, which means that the product will be an important driver for the future. growth in Elekta.
In terms of Elekta's capital market, Hausmann was also so optimistic about Unity's future prospects that it had a good chance of exceeding the target of 75 units sold. The overall goal of the company in sales is to increase each year from 8 to 10%. UBS Investment Bank, which was mocking Elekta's growth opportunities, recently formulated its buy recommendation and thinks that the company will be able to achieve its goals with Unity.
However, it's not just about getting approval in the US, it's also about selling more in China, where Elekta is the market leader. The country will invest heavily in radiotherapy in the coming years and, according to Nordea's analysis, it is the largest purchase to date, exceeding 20 billion.
Elekta therefore contains many exciting triggers, both in the near future and in the years to come. As a result, in a more efficient stock market, the stock can recover, although much of future growth has already been accounted for in current price levels.
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