In this equity research report, analysts Vilmer Larsson and Meja Wessman take a closer look at
RaySearch Laboratories, one of the leading software providers within cancer treatment for clinics and
hospitals. With a market share of 50% in proton therapy software and significant advancements in
adaptive therapy tools, RaySearch is well-positioned to capitalize on the growing market for precision
treatments that is projected to grow at a 13% CAGR until 2033E. Through an equally weighted DCF
and a peer valuation, a target price of SEK 284 is implied, indicating a potential upside of 32%.
Investment Highlights
● Increasing cancer cases and hospital recovery from the pandemic drive demand for cancer
treatment solutions.
● RaySearch’s strategic partnerships, global market reach and strong growth in Europe and Asia
position it to secure 230–310 new customers by 2026, potentially generating an additional 92–
118 MSEK in annual recurring revenue.
● RaySearch leverages recurring revenue growth, pricing power and scalable AI solutions. In
combination with a lean cost structure, RaySearch is set to expand the EBIT margins from 11% in
2023 to a projected 27% by 2026, driven by strong customer retention and increasing demand for
advanced oncology tools.