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Elekta Gains as Goldman Sees Earnings Growth: Stockholm Mover
Elekta AB (EKTAB) advanced the most in one week in Stockholm trading after Goldman Sachs Group Inc. forecast that the Swedish company will increase sales and earnings by taking market share from its biggest rivals.
Elekta, a manufacturer of radiation-surgery equipment, gained as much as 2.1 kronor, or 2.1 percent, to 104.4 kronor, its steepest climb since Dec. 4, and was up 2 percent at 104.3 kronor as of 12:16 p.m. local time. The volume was 38 percent of the three-month daily average.
Goldman Sachs today raised its 12-month share price target on Elekta to 133 kronor, from 122 kronor previously, and reiterated its earlier Conviction List Buy recommendation on the stock. The Swedish company, which is based in Stockholm and has 3,300 employees, competes with Varian Medical Systems Inc. and Germany’s Siemens AG. (SIE)
“Elekta remains the best positioned company on our industrial scorecard,” Veronika Dubajova and Mick Readey, analysts at Goldman Sachs in London, wrote in a note to clients today. “We expect growing demand for radiation therapy in emerging markets coupled with market share gains from Siemens and Varian to drive top-quartile revenue and earnings growth, and top-quartile returns.
Elekta’s current valuation is ‘‘relatively undemanding,’’ the analysts said.
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