News Flash: One CALIDA Holding AG (VTX:CALN) Analyst Has Been Trimming Their Revenue Forecasts

Market forces rained on the parade of CALIDA Holding AG (VTX:CALN) shareholders today, when the covering analyst downgraded their forecasts for this year. There was a fairly draconian cut to their revenue estimates, perhaps an implicit admission that previous forecasts were much too optimistic.

Following the latest downgrade, the current consensus, from the lone analyst covering CALIDA Holding, is for revenues of CHF288m in 2021, which would reflect a stressful 23% reduction in CALIDA Holding's sales over the past 12 months. Before the latest update, the analyst was foreseeing CHF320m of revenue in 2021. The consensus view seems to have become more pessimistic on CALIDA Holding, noting the substantial drop in revenue estimates in this update.

Check out our latest analysis for CALIDA Holding

We'd point out that there was no major changes to their price target of CHF53.50, suggesting the latest estimates were not enough to shift their view on the value of the business.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the CALIDA Holding's past performance and to peers in the same industry. One more thing stood out to us about these estimates, and it's the idea that CALIDA Holding's decline is expected to accelerate, with revenues forecast to fall at an annualised rate of 40% to the end of 2021. This tops off a historical decline of 1.5% a year over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenue grow 8.4% per year. So it's pretty clear that, while it does have declining revenues, the analyst also expect CALIDA Holding to suffer worse than the wider industry.

The Bottom Line

The clear low-light was that the analyst slashing their revenue forecasts for CALIDA Holding this year. They also expect company revenue to perform worse than the wider market. Given the stark change in sentiment, we'd understand if investors became more cautious on CALIDA Holding after today.

Still got questions? One CALIDA Holding broker/analyst has provided estimates out to 2023, which can be seen for free on our platform here.

Another way to search for interesting companies that could be reaching an inflection point is to track whether management are buying or selling, with our free list of growing companies that insiders are buying.

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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.