Medigene AG (ETR:MDG1) Analysts Just Trimmed Their Revenue Forecasts By 41%

One thing we could say about the analysts on Medigene AG (ETR:MDG1) - they aren't optimistic, having just made a major negative revision to their near-term (statutory) forecasts for the organization. There was a fairly draconian cut to their revenue estimates, perhaps an implicit admission that previous forecasts were much too optimistic.

After this downgrade, Medigene's two analysts are now forecasting revenues of €26m in 2022. This would be a major 151% improvement in sales compared to the last 12 months. Before the latest update, the analysts were foreseeing €45m of revenue in 2022. It looks like forecasts have become a fair bit less optimistic on Medigene, given the pretty serious reduction to revenue estimates.

See our latest analysis for Medigene

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. The analysts are definitely expecting Medigene's growth to accelerate, with the forecast 151% annualised growth to the end of 2022 ranking favourably alongside historical growth of 4.8% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 21% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Medigene to grow faster than the wider industry.

The Bottom Line

The clear low-light was that analysts slashing their revenue forecasts for Medigene this year. The analysts also expect revenues to grow faster than the wider market. Given the stark change in sentiment, we'd understand if investors became more cautious on Medigene after today.

Of course, this isn't the full story. We have estimates for Medigene from its two 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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