Feb. 26 (Bloomberg) -- Elekta AB fell for a second day after Danske Bank A/S cut it recommendation on the stock to hold from buy and said currency movements are likely to trigger a change in guidance.
Elekta, a Swedish manufacturer of radiation-surgery equipment, fell as much as 2 percent and was down 1.9 percent at 97.85 kronor as of 12:50 p.m. in Stockholm. Trading volume was about half the three-month daily average at below 700,000 shares.
Danske cut its 12-month share price estimate to 100 kronor from 120 kronor and said it sees growth in full-year earnings before income and tax of 13 percent, compared to Elekta’s own forecast of 15 percent. The company, which is based in the Swedish capital, competes with Palo Alto, California-based Varian Medical Systems Inc.
“Elekta lacks a natural hedge in its currency exposure,” Danske analysts San Ng and Thomas Steen Hansen said in a note to clients today. “Our calculations indicate a non-hedged 6 percent hit to EBIT since Elekta communicated with the market in December.”
Elekta’s shares have lost 3.6 percent this year, compared with a gain of 7.3 percent for the OMX Stockholm 30 Index, giving the company a market value of 37.4 billion kronor.
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