Analysts Just Made A Substantial Upgrade To Their Zealand Pharma A/S (CPH:ZEAL) Forecasts

Shareholders in Zealand Pharma A/S (CPH:ZEAL) may be thrilled to learn that the analysts have just delivered a major upgrade to their near-term forecasts. Consensus estimates suggest investors could expect greatly increased statutory revenues and earnings per share, with the analysts modelling a real improvement in business performance. It will be interesting to see if the latest numbers are enough to change investors' appetite for Zealand Pharma. Shares are down 6.7% to kr.728 in the last 7 days.

After the upgrade, the twelve analysts covering Zealand Pharma are now predicting revenues of kr.2.4b in 2025. If met, this would reflect a sizeable improvement in sales compared to the last 12 months. Losses are expected to turn into profits real soon, with the analysts forecasting kr.9.58 in per-share earnings. Prior to this update, the analysts had been forecasting revenues of kr.2.2b and earnings per share (EPS) of kr.5.90 in 2025. There has definitely been an improvement in perception recently, with the analysts substantially increasing both their earnings and revenue estimates.

Check out our latest analysis for Zealand Pharma

Although the analysts have upgraded their earnings estimates, there was no change to the consensus price target of kr.997, suggesting that the forecast performance does not have a long term impact on the company's valuation.

Of course, another way to look at these forecasts is to place them into context against the industry itself. The analysts are definitely expecting Zealand Pharma's growth to accelerate, with the forecast 15x annualised growth to the end of 2025 ranking favourably alongside historical growth of 14% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 22% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Zealand Pharma is expected to grow much faster than its industry.

The Bottom Line

The most important thing to take away from this upgrade is that analysts upgraded their earnings per share estimates for next year, expecting improving business conditions. They also upgraded their revenue estimates for next year, and sales are expected to grow faster than the wider market. The lack of change in the price target is puzzling, but with a serious upgrade to next year's earnings expectations, it might be time to take another look at Zealand Pharma.

Still, the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for Zealand Pharma going out to 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 upgrading 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.