Arcure S.A.'s (EPA:ALCUR) Sole Analyst Just Made A Sizeable Upgrade To Their Forecasts

Arcure S.A. (EPA:ALCUR) shareholders will have a reason to smile today, with the covering analyst making substantial upgrades to this year's forecasts. The analyst greatly increased their revenue estimates, suggesting a stark improvement in business fundamentals. The stock price has risen 9.9% to €4.00 over the past week, suggesting investors are becoming more optimistic. Whether the upgrade is enough to drive the stock price higher is yet to be seen, however.

Following the latest upgrade, the current consensus, from the solo analyst covering Arcure, is for revenues of €10m in 2021, which would reflect a discernible 3.4% reduction in Arcure's sales over the past 12 months. The loss per share is anticipated to greatly reduce in the near future, narrowing 36% to €0.39. Yet before this consensus update, the analyst had been forecasting revenues of €9.4m and losses of €1.02 per share in 2021. We can see there's definitely been a change in sentiment in this update, with the analyst administering a sizeable upgrade to this year's revenue estimates, while at the same time reducing their loss estimates.

Check out our latest analysis for Arcure

The consensus price target rose 11% to €5.00, with the analyst encouraged by the higher revenue and lower forecast losses for this year.

Of course, another way to look at these forecasts is to place them into context against the industry itself. These estimates imply that sales are expected to slow, with a forecast annualised revenue decline of 6.7% by the end of 2021. This indicates a significant reduction from annual growth of 10% over the last three years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 5.7% annually for the foreseeable future. It's pretty clear that Arcure's revenues are expected to perform substantially worse than the wider industry.

The Bottom Line

The most important thing here is that the analyst reduced their loss per share estimates for this year, reflecting increased optimism around Arcure's prospects. Fortunately, they also upgraded their revenue estimates, and are forecasting revenues to grow slower than the wider market. Given that the consensus looks almost universally bullish, with a substantial increase to forecasts and a higher price target, Arcure could be worth investigating further.

It's great to see this analyst upgrading their estimates, but the biggest highlight to us is that the business is expected to become profitable in the foreseeable future. You can learn more about these forecasts, for free on our platform here.

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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.