Sectra 'far too expensive'; Stifel starts with 'sell'

SECTRA AB

31/03/2023 09:28

** Stifel starts Sectra  SECTb.ST  with "sell" citing "very
high" risk of contracting valuation multiples for the Swedish
technology firm
    ** "Sectra is far too expensive for our taste," the
brokerage says
    ** The group is currently trading at its largest ever
premium compared to the broader software market, Stifel says,
with valuation multiples which have not come down since 2020
    ** Sectra is very well positioned to gain market share in
the imaging IT market and to outpace competition in digital
pathology, which should lead to mid-teens growth for several
years to come, the brokerage says
    ** Despite that, Stifel does not expect significant margin
expansion in the coming years, which will limit EBITDA growth
    ** The stock trades down 10% at 0922 GMT

 (Reporting by Jagoda Darlak)
 ((jagoda.darlak@tr.com))