Analysts Have Been Trimming Their Biocartis Group NV (EBR:BCART) Price Target After Its Latest Report

Biocartis Group NV (EBR:BCART) investors will be delighted, with the company turning in some strong numbers with its latest results. The overall earnings picture was okay, with revenues of €55m beating expectations by 11%. Statutory losses were €1.26 per share, only marginally better than what the analysts had forecast. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

See our latest analysis for Biocartis Group

Taking into account the latest results, the current consensus from Biocartis Group's dual analysts is for revenues of €73.0m in 2022, which would reflect a major 33% increase on its sales over the past 12 months. Losses are forecast to balloon 43% to €1.77 per share. Before this latest report, the consensus had been expecting revenues of €70.2m and €0.97 per share in losses. While this year's revenue estimates increased, there was also a sizeable expansion in loss per share expectations, suggesting the consensus has a bit of a mixed view on the stock.

It will come as no surprise that expanding losses caused the consensus price target to fall 16% to €6.50with the analysts implicitly ranking ongoing losses as a greater concern than growing revenues.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. It's clear from the latest estimates that Biocartis Group's rate of growth is expected to accelerate meaningfully, with the forecast 33% annualised revenue growth to the end of 2022 noticeably faster than its historical growth of 27% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 8.6% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Biocartis Group is expected to grow much faster than its industry.

The Bottom Line

The most important thing to note is the forecast of increased losses next year, suggesting all may not be well at Biocartis Group. Happily, they also upgraded their revenue estimates, and are forecasting revenues to grow faster than the wider industry. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have analyst estimates for Biocartis Group going out as far as 2023, and you can see them free on our platform here.

You still need to take note of risks, for example - Biocartis Group has 5 warning signs (and 3 which can't be ignored) we think you should know about.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.