Market forces rained on the parade of Oncodesign Société Anonyme (EPA:ALONC) shareholders today, when the analysts downgraded their forecasts for this year. This report focused on revenue estimates, and it looks as though the consensus view of the business has become substantially more conservative.
Following the downgrade, the latest consensus from Oncodesign Société Anonyme's three analysts is for revenues of €38m in 2022, which would reflect an okay 4.7% improvement in sales compared to the last 12 months. Before the latest update, the analysts were foreseeing €49m of revenue in 2022. The consensus view seems to have become more pessimistic on Oncodesign Société Anonyme, noting the sizeable cut to revenue estimates in this update.
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. We would highlight that Oncodesign Société Anonyme's revenue growth is expected to slow, with the forecast 4.7% annualised growth rate until the end of 2022 being well below the historical 16% p.a. growth over the last five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 29% annually. Factoring in the forecast slowdown in growth, it seems obvious that Oncodesign Société Anonyme is also expected to grow slower than other industry participants.
The Bottom Line
The clear low-light was that analysts slashing their revenue forecasts for Oncodesign Société Anonyme this year. They also expect company revenue to perform worse than the wider market. Given the stark change in sentiment, we'd understand if investors became more cautious on Oncodesign Société Anonyme after today.
Looking to learn more? At least one of Oncodesign Société Anonyme's three analysts has provided estimates out to 2024, which can be seen for 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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