What You Need To Know About The Beyond Frames Entertainment AB (publ) (FRA:8WP) Analyst Downgrade Today

The analysts covering Beyond Frames Entertainment AB (publ) (FRA:8WP) delivered a dose of negativity to shareholders today, by making a substantial revision to their statutory forecasts for this year. This report focused on revenue estimates, and it looks as though the consensus view of the business has become substantially more conservative.

Following the downgrade, the consensus from dual analysts covering Beyond Frames Entertainment is for revenues of kr203m in 2024, implying a small 2.6% decline in sales compared to the last 12 months. Before the latest update, the analysts were foreseeing kr237m of revenue in 2024. The consensus view seems to have become more pessimistic on Beyond Frames Entertainment, noting the substantial drop in revenue estimates in this update.

View our latest analysis for Beyond Frames Entertainment

There was no particular change to the consensus price target of kr29.00, with Beyond Frames Entertainment's latest outlook seemingly not enough to result in a change of valuation. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. The most optimistic Beyond Frames Entertainment analyst has a price target of kr30.00 per share, while the most pessimistic values it at kr28.00. With such a narrow range of valuations, analysts apparently share similar views on what they think the business is worth.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. We would highlight that sales are expected to reverse, with a forecast 5.1% annualised revenue decline to the end of 2024. That is a notable change from historical growth of 60% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 5.2% annually for the foreseeable future. It's pretty clear that Beyond Frames Entertainment's revenues are expected to perform substantially worse than the wider industry.

The Bottom Line

The most important thing to take away is that analysts cut their revenue estimates for this year. They also expect company revenue to perform worse 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 Beyond Frames Entertainment after today.

Of course, there's always more to the story. We have estimates for Beyond Frames Entertainment from its dual analysts out until 2026, 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 with high insider ownership.

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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.