Zealand Pharma A/S (CPH:ZEAL) Analysts Are Way More Bearish Than They Used To Be

One thing we could say about the analysts on Zealand Pharma A/S (CPH:ZEAL) - they aren't optimistic, having just made a major negative revision to their near-term (statutory) forecasts for the organization. Both revenue and earnings per share (EPS) estimates were cut sharply as analysts factored in the latest outlook for the business, concluding that they were too optimistic previously.

Following the downgrade, the current consensus from Zealand Pharma's eleven analysts is for revenues of kr.1.6b in 2025 which - if met - would reflect a substantial increase on its sales over the past 12 months. Losses are predicted to fall substantially, shrinking 61% to kr.5.81 per share. Before this latest update, the analysts had been forecasting revenues of kr.1.9b and earnings per share (EPS) of kr.3.97 in 2025. There looks to have been a major change in sentiment regarding Zealand Pharma's prospects, with a measurable cut to revenues and the analysts now forecasting a loss instead of a profit.

View our latest analysis for Zealand Pharma

The consensus price target was broadly unchanged at kr.969, perhaps implicitly signalling that the weaker earnings outlook is not expected to have a long-term impact on the valuation.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. The analysts are definitely expecting Zealand Pharma's growth to accelerate, with the forecast 19x 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 19% 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 is that analysts are expecting Zealand Pharma to become unprofitable this year. While analysts did downgrade their revenue estimates, these forecasts still imply revenues will perform better than the wider market. We're also surprised to see that the price target went unchanged. Still, deteriorating business conditions (assuming accurate forecasts!) can be a leading indicator for the stock price, so we wouldn't blame investors for being more cautious on Zealand Pharma after the downgrade.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Zealand Pharma going out to 2027, 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.