What Elekta Holders Bought Into

If you had decided to back Elekta on 2025-10-30, you were stepping into a live debate about whether European software momentum and a hoped-for Chinese recovery could outweigh tariffs, FX pressure, and rising competition. Holding Elekta over the past year would have returned 29.1%, including dividends. If that investment choice was in front of you again today, how much weight would you give to what was already on record about margins and orders?

The move put Elekta in the middle of this trade. Scan 125 healthcare AI stocks for other companies exposed to it.

The Argument Investors Faced On Elekta

The shares cost SEK48.68 at the start of the period, and anyone looking at Elekta then had to choose between two sharply different stories about where the business might head next.

The bullish narrative pointed to European software rollouts and a hoped-for recovery in China, with a Fair Value of SEK53.79, a price implied by assumptions such as 4.4% annual revenue growth and profit margins rising toward 9.2%.

The bearish view stressed trade barriers, tougher reimbursement and rising competition, with a Fair Value of SEK34 that reflected slower 1.0% growth and margin pressure despite an 8.2% profit margin assumption.

What The Results Changed For Elekta

The clearest new fact for Elekta was profitability. Q1 2027 net income reached SEK264m versus SEK107m a year earlier, and net margin shifted from 2.9% to 7.5%. That move sat closer to the bullish margin story, even though revenue moved from SEK3,646m to SEK3,536m and kept a lid on the growth side. Overall, the evidence cut both ways.

The useful takeaway is simple. When a thesis hinges on margin repair, like Elekta’s did, track net margin and absolute profit together in each report and test whether they move toward the stated target or stall.

What Elekta’s Recent Run Already Prices In

Elekta trades at SEK59.7 today, after a 29.1% gain over the past year, while the selected Narrative’s Fair Value sits below the current price based on its own framework. That view reflects concerns about slower sales and whether margin repair can keep pace.

The Narrative asks what must keep working in Elekta’s favor. A buyer at today’s level would be relying on cost savings and adaptive radiotherapy progress to offset weaker solution sales and pressure in regions such as APJ, China and TIMEA.

"Although Elekta reports higher gross and EBIT margins supported by cost savings, the recent 2% constant currency decline in net sales and 9% drop in solution sales indicate that trade frictions and tariff volatility could resurface against a weaker top line and compress future gross margin and earnings rather than just fluctuate around current levels."

One Narrative has put a figure on that disagreement. → See the Narrative with its lower Fair Value, assumptions and all

Find Your Own Contrarian Opportunity

You may be late to this rally, but that does not have to mean arriving late to every opportunity. Start with companies whose prices leave room for a different view of their future. Here are three trading below our estimates.

• Company 1 - 35% below our estimate - shifts its mix toward bio-based crop solutions and seed assets that carry richer margins.
• Company 2 - 21% below our estimate - converts a record order backlog into cleaner-fuel vessel deliveries with multi-year revenue visibility.
• Company 3 - 43% below our estimate - executes its efficiency program so higher-margin composite aircraft parts translate into stronger cash flow.

That is three of the list. See every one of the 199 undervalued companies on it →

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