Investing.com -- Elekta AB (ST:EKTAb) shares were down over 4% on Tuesday after the medical technology company announced the cancellation of SEK 4.9 billion in orders from its existing backlog, a move analysts at Morgan Stanley viewed as a “clear negative.”
This announcement followed the company’s disclosure the previous day of Jakob Just-Bomholt’s appointment as its new President and chief executive, set to begin in August.
The cancelled orders account for 11.7% of Elekta’s existing backlog and are equivalent to 25% of last year’s total orders.
Morgan Stanley maintains an "underweight" rating on Elekta AB with a price target of 55 Swedish Kronor.
Elekta confirmed its mid-term financial target of a 14% EBIT margin, which compares to consensus forecasts of 11.9% for fiscal year 2026, 12.8% for 2027, and 13.3% for 2028.
Bernstein analysts acknowledged the new CEO’s breadth of experience, which includes serving as chief executive of 3Shape from 2020 to 2025, and previous roles at Falck’s Emergency Services division and A.P. Moller-Maersk.
Bernstein stated they remain conservative until clearer signs of operational and financial improvement become evident.
The analysts indicated they are keen to see an update centered on a new "Access 2030" plan during an upcoming Investor Update.
Elekta’s market capitalization was approximately 19.37 billion SKr, and its enterprise value stood at around 22.83 billion SKr, according to Morgan Stanley.
Bernstein reported a market capitalization of 19.45 billion SEK and an enterprise value of 24.10 billion SEK.
Bernstein’s financial outlook for Elekta includes a fiscal year 2024 adjusted earnings per share of 3.63 SEK, projected to be 3.09 SEK for 2025 and 3.72 SEK for 2026.
Net earnings were 1.30 billion SEK in fiscal year 2024, forecast at 241 million SEK for 2025 and 1.39 billion SEK for 2026.
The company’s dividend yield was 4.7%. Performance metrics show year-to-date shares were down 17.1%, 1.5% up over one month, down 25.1% over six months, and down 20.6% over 12 months.