- (PLX AI) - Getinge shares fell 15% at the open after the company cut its guidance after hours yesterday and Nordea analysts downgraded their recommendation to hold.
- • Getinge 2022 outlook for organic net sales is now expected to be in line with actual net sales 2021, while long-term financial targets for organic growth of 4-6% remain unchanged
- • The two main challenges are a mild flu season globally, which means reduced demand for products for ECMO therapy and a rapidly reduced production of COVID-19 vaccines, as well as China lockdowns, the company said
- • Nordea cut their recommendation to hold from buy, with fair value SEK 260
- • Valuation now looks undemanding, but with earnings risk on the downside there may be better opportunities to accumulate the shares in the future, Nordea said
- • The guidance cut is bad for sentiment, but the profit warning was already discounted by the market to some extent, analysts at Carnegie said, cutting their price target to SEK 350 from SEK 450 on Getinge, but maintaining a buy recommendation
- • Getinge is now trading at a discount to both local peer Arjo and international peers, Carnegie said
- • NOTE: Analysts at Kepler Cheuvreux downgraded Getinge to hold from buy on June 13, correctly predicting the company may be forced to issue a profit warning