Morningstar

Elekta Earnings: Margin Improvement in Focus

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Securities In This Article
Elekta AB Class B
(EKTA B)

We are maintaining our fair value estimate of SEK 127 for wide-moat Elekta EKTA B after incorporating recently released first-quarter results. We have also updated our medium-term forecast following the company’s recent capital markets day that we attended, which gave us more confidence in the company’s software offering. We currently view shares as undervalued.

Margins remain in focus for Elekta, and the company finally delivered on this front in the first quarter. Volume pull-through on the strong top-line performance helped, but Elekta is also managing its operating expenses prudently. The company’s positive margin development gives us slightly more comfort with its mid-term margin guidance, particularly as some of the inflationary and freight headwinds fade.

Much discussion during the capital markets day was on Elekta ONE, and the company partly attributed strong top-line growth to the ongoing successful adoption of this software suite. The overall product portfolio looks healthy, which should allow the company to maintain its competitiveness against Healthineers.

The author or authors do not own shares in any securities mentioned in this article. Find out about Morningstar’s editorial policies.

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About the Author

Alex Morozov, CFA

Regional Director
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Alex Morozov, CFA, is a regional director, Europe, for Morningstar*. He leads a team of equity analysts based in Europe who cover European and global companies across all major sectors of the economy. Morozov is also a member of the Equity Research leadership group and a member of the Economic Moat Committee. In addition to leading the European analyst team, reviewing ratings recommendations, and developing talent, Morozov also leads business development efforts in Europe, working closely with the institutional sales team and media/marketing partners.

Before joining Morningstar in 2006, Morozov worked in the insurance industry. Before assuming his current role in 2014, Morozov was head of global healthcare equity research. Previously, he was a senior equity analyst, covering the medical instruments, life sciences, and diagnostics industries.

Morozov holds a bachelor’s degree in finance, with a minor in mathematics, from the University of Missouri. He also holds the Chartered Financial Analyst® designation. Morozov was the member of the Board for the CFA Society of Netherlands from 2020-2024.

*Morningstar Holland BV (“Morningstar”) is a wholly owned subsidiary of Morningstar, Inc

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