Initiation of Coverage: Scaling MagnetOs: A long runway for growth and margins - initiate with Buy

研报英文原文证据摘录

Initiation of Coverage: Scaling MagnetOs: A long runway for growth and margins - initiate with Buy

h Cons.

extremities and trauma markets represent a c.US$1.2bn opportunity and an increasingly

12/26E - 0.29 - 0.28

relevant second growth leg, with c.2% share by 2031E and c.12% of MagnetOs sales.

12/27E - 0.67 - 0.53

Growth should be underpinned by differentiated clinical evidence, line extensions such 12/28E - 1.10 - 0.78

as MIS, recent large national hospital contract wins broadening access (>3x hospital

account expansion over last 2 yrs) and supporting scaled adoption, and increasing Tanya Hansalik

commercial leverage, including the Medtronic alliance. Analyst

tanya.hansalik@ubs.com

+41-44-239-2053

Operational leverage support expanding cash flows

We expect Kuros to expand adj. EBITDA margins toward c21% by F28E (from 13.4% in Leonie Zirn

AnalystFY25), supported by scale, SG&A leverage and improving operational efficiency. Volume

leonie.zirn@ubs.com

growth from scaled adoption of MagnetOs, through commercial leverage (incl. +41-44-235 0154

Medtronic partnership), national contract wins and entry into trauma and extremities

should drive higher drop-through, while the MIS system should support broader

procedure coverage and potentially higher ASPs. Further efficiency gains from local US

production, which lower logistics/tariff exposure and reduce inventory levels, should

support FCF expansion to cCHF70m annual by FY30E.

Valuation: High growth potential warrants premium

Our CHF33 PT is based on our DCF (8.0% WACC, 2.8%TGR). On '27E EV/Sales Kuros

trades at 3.6x , a premium vs. orthopaedic/Swiss MedTech (2.7x/3.3x) but below 3-year

historic (c5x), which we view as warranted given its superior growth profile, improving

profitability and returns.