SURGICAL SCIENCE: DANSKE SEES INTERESTING GROWTH PROSPECTS DESPITE DOWNSlide
STOCKHOLM (Nyhetsbyrån Direkt) Danske Bank continues to believe that Surgical Science has interesting growth prospects despite the terminated letter of intent with Intuitive Surgical (ISRG) that was announced on Wednesday and caused the share to fall 60 percent to SEK 30.
This is evident from an analysis on Thursday where the target price is lowered to SEK 55 from SEK 125 with a maintained buy recommendation.
The bank writes that Surgical Science is down for the count but not out. Looking ahead to 2026, Danske Bank sees growth opportunities both within the Industry/OEM business area as well as for Educational Products. Following the termination of the letter of intent, Danske Bank sees EBITA growth of 19 percent for 2026.
For the full years 2026 and 2027, Danske Bank lowers its estimates for sales and EBITA by 9 and 46 percent, respectively. Growth in Industry/OEM is expected to be -4 percent for 2026 with a 19 percent decline in license revenue in the same year. Adjusted for ISRG, underlying license sales are expected to grow by 9 percent in 2026.
Surgical Science is now trading at valuation multiples of 6-4 times EV/EBITA for the years 2026-2027, according to Danske Bank. The target price of SEK 55 at the bank corresponds to a valuation multiple of 14 times for the estimated 2026 results.
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