Handelsbanken has lowered its recommendation for medtech company Getinge to Hold (from Buy) and cut its price target to SEK 205 from SEK 225, according to a recent research note.
The bank stated that while it remains positive on Getinge's long-term investment case, it anticipates that 2026 will be a transition year characterized by earnings contraction and slower organic growth.
"We are therefore moving to the sidelines to await a better entry point," SHB wrote.
The lower price target reflects downward revisions to earnings estimates.
Regarding the Q1 report (due April 21), Getinge is expected to post organic growth of 3.8 percent and organic order intake growth of 4.1 percent. Adjusted EBITA is projected to have declined by 15 percent to SEK 851 million. For the full-year adjusted EBITA forecast, SHB sits 3 percent below consensus.
Getinge AB is a Sweden-based company operating within healthcare sector. The Company provides hospitals and Life Science institutions with products and solutions aimed at improving clinical outcomes and optimizing workflows. The Company’s reporting segments have the following activities: Acute Care Therapies develops solutions for life-sustaining care in acute health conditions. Life Science offers a comprehensive range of equipment, technical expertise and prevention consultation contamination in pharmaceutical production, biomedical research, production of medical equipment and in various laboratory applications. Surgical Workflows offers products and services for the effective disinfection and sterilization of instruments used in operations, operating tables and others hardware for operating rooms and advanced IT systems for efficient and secure workflows in hospitals.
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