These Analysts Think Medartis Holding AG's (VTX:MED) Sales Are Under Threat

Market forces rained on the parade of Medartis Holding AG (VTX:MED) shareholders today, when the analysts 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 three analysts covering Medartis Holding provided consensus estimates of CHF156m revenue in 2022, which would reflect an uneasy 9.9% decline on its sales over the past 12 months. Before the latest update, the analysts were foreseeing CHF188m of revenue in 2022. It looks like forecasts have become a fair bit less optimistic on Medartis Holding, given the substantial drop in revenue estimates.

See our latest analysis for Medartis Holding

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. These estimates imply that sales are expected to slow, with a forecast annualised revenue decline of 19% by the end of 2022. This indicates a significant reduction from annual growth of 12% 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 7.9% per year. It's pretty clear that Medartis Holding's revenues are expected to perform substantially worse than the wider industry.

The Bottom Line

The clear low-light was that analysts slashing their revenue forecasts for Medartis Holding this year. They're also anticipating slower revenue growth than the wider market. Often, one downgrade can set off a daisy-chain of cuts, especially if an industry is in decline. So we wouldn't be surprised if the market became a lot more cautious on Medartis Holding after today.

Looking for more information? We have estimates for Medartis Holding from its three analysts out until 2024, and you can see them 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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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.