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    Will New NHS Cloud Wins and Pathology Deal Change Sectra's (OM:SECT B) As-a-Service Narrative?

    Simply Wall St·12/10/2025 04:31:23
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    • Sectra recently secured a multi-year deal to provide its Sectra One Cloud enterprise imaging service to four NHS trusts, alongside a 7-year SEK 37.5 MSEK digital pathology contract in Sweden and a new AI-enabled reporting solution launch in the US.
    • Together, these wins highlight how Sectra is deepening long-term, cloud-based relationships across major healthcare systems while layering in workflow and AI tools that can increase customer stickiness.
    • We’ll now examine how expanding Sectra One Cloud and digital pathology contracts could influence the company’s as-a-service growth narrative.

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    Sectra Investment Narrative Recap

    To own Sectra, you need to believe in its shift toward recurring, cloud-based imaging and cybersecurity services, supported by strong customer retention and expanding enterprise contracts. The new NHS Sectra One Cloud deal and 7‑year digital pathology contract reinforce that as-a-service story and help offset some lumpiness from large one-off orders, but they do not remove the short term risk around revenue volatility as the SaaS transition reshapes upfront license and hardware income.

    Among the latest announcements, the NHS Sectra One Cloud agreement is most relevant. It directly ties into the core catalyst of growing recurring cloud revenue, as Sectra takes over more of the infrastructure, security and upgrades for multi‑hospital systems. For investors focused on how quickly SaaS can balance out declining nonrecurring hardware and dependence on large individual contracts, this type of multi‑trust, multi‑year cloud win is where the thesis increasingly lives or dies.

    Yet against this growing cloud and AI momentum, investors still need to be aware of how dependent reported results can be on a handful of very large deals and ...

    Read the full narrative on Sectra (it's free!)

    Sectra’s narrative projects SEK5.2 billion revenue and SEK918.0 million earnings by 2028. This requires 16.3% yearly revenue growth and about SEK354.6 million earnings increase from SEK563.4 million today.

    Uncover how Sectra's forecasts yield a SEK207.50 fair value, a 25% downside to its current price.

    Exploring Other Perspectives

    OM:SECT B 1-Year Stock Price Chart
    OM:SECT B 1-Year Stock Price Chart

    Five fair value estimates from the Simply Wall St Community span a wide range, from SEK157.52 to SEK446.18, underscoring how differently people think about Sectra’s upside. When you set those views against the company’s push into long term cloud contracts and the risk of revenue swings from large orders, it becomes clear why exploring several competing perspectives can be valuable.

    Explore 5 other fair value estimates on Sectra - why the stock might be worth as much as 61% more than the current price!

    Build Your Own Sectra Narrative

    Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

    • A great starting point for your Sectra research is our analysis highlighting 2 key rewards that could impact your investment decision.
    • Our free Sectra research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Sectra's overall financial health at a glance.

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    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.