This Analyst Just Downgraded Their cBrain A/S (CPH:CBRAIN) EPS Forecasts

One thing we could say about the covering analyst on cBrain A/S (CPH:CBRAIN) - they aren't optimistic, having just made a major negative revision to their near-term (statutory) forecasts for the organization. Revenue and earnings per share (EPS) forecasts were both revised downwards, with the analyst seeing grey clouds on the horizon.

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After the downgrade, the consensus from cBrain's one analyst is for revenues of kr.250m in 2025, which would reflect a noticeable 4.1% decline in sales compared to the last year of performance. Statutory earnings per share are supposed to plummet 38% to kr.1.82 in the same period. Prior to this update, the analyst had been forecasting revenues of kr.280m and earnings per share (EPS) of kr.2.95 in 2025. Indeed, we can see that the analyst is a lot more bearish about cBrain's prospects, administering a measurable cut to revenue estimates and slashing their EPS estimates to boot.

See our latest analysis for cBrain

It'll come as no surprise then, to learn that the analyst has cut their price target 34% to kr.105.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. These estimates imply that sales are expected to slow, with a forecast annualised revenue decline of 8.0% by the end of 2025. This indicates a significant reduction from annual growth of 18% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 10% per year. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - cBrain is expected to lag the wider industry.

The Bottom Line

The most important thing to take away is that the analyst cut their earnings per share estimates, expecting a clear decline in business conditions. Regrettably, they also downgraded their revenue estimates, and the latest forecasts imply the business will grow sales slower than the wider market. With a serious cut to this year's expectations and a falling price target, we wouldn't be surprised if investors were becoming wary of cBrain.

Still, the long-term prospects of the business are much more relevant than next year's earnings. We have analyst estimates for cBrain going out as far as 2028, 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.