Getinge Earnings: Improved Production Leads to More Recovery and a Boost to Our Fair Value Estimate

Narrow-moat Getinge reported third-quarter earnings above our expectations. We are increasing our fair value estimate to SEK 247 from SEK 221, as Getinge is executing a turnaround in its acute care therapies offerings faster than we had expected. Shares remain undervalued, in our view. Organic net sales rose 5.7% year over year, mainly driven by the increased delivery of cardiac assist consumables. While the production and regulatory challenges associated with Getinge’s cardiac assist and cardiopulmonary products are unlikely to be fully resolved until mid-2024, we are encouraged to see continued progress mitigating top-line pressure in the acute care therapies segment.