Marinomed Biotech AG's (VIE:MARI) Analyst Just Slashed This Year's Estimates

The latest analyst coverage could presage a bad day for Marinomed Biotech AG (VIE:MARI), with the covering analyst making across-the-board cuts to their statutory estimates that might leave shareholders a little shell-shocked. Both revenue and earnings per share (EPS) forecasts went under the knife, suggesting the analyst has soured majorly on the business.

After the downgrade, the consensus from Marinomed Biotech's lone analyst is for revenues of €12m in 2022, which would reflect a considerable 8.7% decline in sales compared to the last year of performance. Losses are supposed to balloon 43% to €5.07 per share. Yet before this consensus update, the analyst had been forecasting revenues of €15m and losses of €3.90 per share in 2022. So there's been quite a change-up of views after the recent consensus updates, with the analyst making a serious cut to their revenue forecasts while also expecting losses per share to increase.

View our latest analysis for Marinomed Biotech

The consensus price target fell 28% to €91.70, with the analyst clearly concerned about the company following the weaker revenue and earnings outlook.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. These estimates imply that sales are expected to slow, with a forecast annualised revenue decline of 8.7% by the end of 2022. This indicates a significant reduction from annual growth of 30% over the last three years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 5.9% per year. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Marinomed Biotech is expected to lag the wider industry.

The Bottom Line

The most important thing to take away is that the analyst increased their loss per share estimates for this year. Unfortunately the analyst also downgraded their revenue estimates, and industry data suggests that Marinomed Biotech's revenues are expected to grow slower than the wider market. With a serious cut to this year's expectations and a falling price target, we wouldn't be surprised if investors were becoming wary of Marinomed Biotech.

That said, this analyst might have good reason to be negative on Marinomed Biotech, given dilutive stock issuance over the past year. Learn more, and discover the 2 other flags we've identified, for free on our platform here.

Of course, seeing company management invest large sums of money in a stock can be just as useful as knowing whether analysts are downgrading their estimates. So you may also wish to search this free list of stocks that insiders are buying.

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