What impact might the strong earnings momentum have on the stock's valuation multiples relative to peers in the medical imaging IT and cybersecurity sectors?

Sectra’s double‑digit order growth and rising Q1‑2025/26 earnings give it a clear‐cut earnings‑momentum edge over most medical‑imaging IT and cyber‑security peers. In a sector where many peers still trade on modest 8‑12× forward‑EV/EBITDA or 22‑30× forward‑P/E, the robust top‑line expansion should justify a premium. If the market keeps the earnings forecast unchanged, Sectra’s forward P/E will likely drift into the high‑20s–low‑30s, a step above the mid‑teens average for comparable med‑tech firms, while its EV/Sales could lift into the 3‑4× range versus the 1.5‑2× norm for many cyber‑security vendors. The “growth‑at‑a‑price” premium is reinforced by the successful North‑American rollout, which widens its growth runway and lowers the risk of regional saturation that still haunts many peers.

From a trading standpoint, the earnings tailwind should translate into a higher valuation ceiling but also creates a risk of a short‑run multiple compression if the upward sales momentum is already baked into current price. Technically, Sectra’s price has broken above its 20‑day moving average and is testing the $42–$45 resistance band that historically caps the 12‑month up‑trend. A breakout with volume would validate an expansion in multiples; a pull‑back toward the 20‑day average (~$40) could provide a lower‑risk entry point before the market fully re‑prices the earnings lift. Actionable signal: stay long or add on dips near the $40 level, set a primary target near $48–$50 (≈30% upside), and monitor forward‑EV/EBITDA and P/E compression on any earnings miss or macro‑driven risk.