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SUS: Future Returns Will Reflect Lost Partnership And Lower Profit Outlook

Delayed Procurement And OEM Reliance Will Test Margins But Improve

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SUS
AnalystLowTarget
Not Invested
Published 31 Aug 2025

Update shared on 14 Dec 2025

Fair value Decreased 73%
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AnalystLowTarget's Fair Value
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1Y
-78.5%
7D
3.1%

Analysts have cut their price target on Surgical Science Sweden sharply from SEK 120.00 to SEK 33.00, citing reduced expectations for revenue growth, profit margins, and future valuation multiples despite only a modest uptick in the assumed discount rate.

What's in the News

  • Intuitive cancels its memorandum of understanding to integrate Surgical Science's simulation software into all da Vinci 5 systems, leading the company to warn it will miss its 2026 financial targets due to an estimated SEK 60 million to SEK 90 million revenue shortfall in that year (Corporate Guidance: Lowered).
  • Surgical Science confirms that the existing legal framework of its collaboration with Intuitive and its full intellectual property rights to the simulation software remain in place despite the MoU cancellation (Corporate Guidance: Lowered).
  • Management reiterates its ongoing search for acquisitions that can add customer bases, product diversification, synergistic products, market access or strategic talent, noting that the new strategy does not factor in any such deals but maintains the same inorganic growth ambitions as before (Seeking Acquisitions/Investments).
  • The company recently hosted an Analyst and Investor Day, providing the market with updated strategic and financial commentary amid shifting expectations (Analyst/Investor Day).

Valuation Changes

  • Fair Value: Cut significantly from SEK 120.00 to SEK 33.00, implying a sharply lower fundamental valuation for the shares.
  • Discount Rate: Risen slightly from 5.54 percent to 5.71 percent, indicating only a modest increase in perceived risk.
  • Revenue Growth: Reduced markedly from 16.04 percent to 6.30 percent, reflecting a more cautious long term outlook for top line expansion.
  • Net Profit Margin: Lowered significantly from 22.64 percent to 13.05 percent, pointing to structurally weaker expected profitability.
  • Future P/E: Decreased from 21.6x to 13.0x, signaling a materially lower assumed valuation multiple on projected earnings.

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