Buy Signal on Elekta AB

We had an Enter Long signal on September 4th 2020, triggered by our system on EKTA-B, Elekta AB, the Swedish Medtech company.

Elekta is a SEK 38.4 bn market cap and specializes in the design, manufacture of clinical radiosurgery and radiotherapy systems and solutions for the treatment of cancer and brain disorders. In addition, the group offers software solutions for image management of electronic medical records and monitoring of patient clinical data. The company has a 35% market share, and its main competitor Varian Medical Systems was recently bought by Siemens Healthineers.

The revenue is well balanced between Europe-Middle East-Africa (38%), North America and South America (31%) and Asia-Pacific (31%).

The company reported a big jump in profits in its Q1-2020 (march-June) due to stronger profit margin that reached 18.5% due to cost cutting actions and a 7% increase in Services business. The order intake was up by 4% on the back of large orders in the US. The company booked 10 orders for its new radiation therapy system.

Short term catalyst: Outbreak situation, cost actions.

This signal is consistent with the renewed bullish momentum on medtechs.