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SECT B: Cloud Expansion Will Support Earnings Multiples Amid Balanced Risk

Transition To SaaS Model Promises Long-term Revenue Stability

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SECT B
AnalystConsensusTarget
Not Invested
Published 15 Dec 2024

Update shared on 21 Dec 2025

Fair value Increased 18%
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AnalystConsensusTarget's Fair Value
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1Y
-8.0%
7D
-1.2%

Analysts have raised their price target on Sectra from SEK 207.5 to SEK 245.0, citing slightly stronger long term revenue growth assumptions and a higher expected future earnings multiple, partly offset by a marginally lower profit margin outlook.

What's in the News

  • Sectra will provide a unified Sectra One Cloud enterprise imaging solution for four NHS trusts in Lancashire and South Cumbria, consolidating radiology and breast imaging across 15 hospitals to strengthen cybersecurity and collaboration (Client Announcements).
  • Region Halland in Sweden signed a seven year, SEK 37.5 million contract to add Sectra's digital pathology module, enabling a fully digital, scalable, and AI ready cancer diagnostics workflow (Client Announcements, Product Related Announcements).
  • Sectra is rolling out its enterprise imaging as a fully managed cloud solution, Sectra One Cloud, to major customers including Southlake Health in Canada and a large US multisite healthcare system, with the US contract valued at USD 45.6 million (Client Announcements).
  • Region Stockholm and Region Gotland will consolidate all hospital imaging into a single Sectra managed cloud system, extending a 20 year collaboration and further reducing IT complexity and cybersecurity risk (Client Announcements).
  • Sectra introduced Sectra Tiger/E Managed Service, a sovereign, fully managed secure collaboration platform for sensitive mobile communications for public sector and corporate customers (Product Related Announcements).

Valuation Changes

  • Fair Value: Raised from SEK 207.5 to SEK 245.0, an increase of about 18 percent.
  • Discount Rate: Edged up slightly from 6.19 percent to 6.20 percent, implying a marginally higher required return.
  • Revenue Growth: Revised up modestly from 13.39 percent to 13.73 percent, reflecting slightly stronger long term growth expectations.
  • Net Profit Margin: Trimmed from 17.24 percent to 16.81 percent, indicating a slightly less optimistic profitability outlook.
  • Future P/E: Increased from 56.4x to 65.6x, suggesting a higher expected valuation multiple on future earnings.

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Disclaimer

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