Some DBV Technologies S.A. (EPA:DBV) Analysts Just Made A Major Cut To Next Year's Estimates

One thing we could say about the analysts on DBV Technologies S.A. (EPA:DBV) - 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 latest downgrade, the current consensus, from the three analysts covering DBV Technologies, is for revenues of US$6.4m in 2024, which would reflect a stressful 59% reduction in DBV Technologies' sales over the past 12 months. Losses are supposed to balloon 26% to US$0.95 per share. Yet before this consensus update, the analysts had been forecasting revenues of US$8.1m and losses of US$0.85 per share in 2024. So there's been quite a change-up of views after the recent consensus updates, with the analysts making a serious cut to their revenue forecasts while also expecting losses per share to increase.

Check out our latest analysis for DBV Technologies

Analysts lifted their price target 7.3% to €5.34, implicitly signalling that lower earnings per share are not expected to have a longer-term impact on the stock's value.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. One more thing stood out to us about these estimates, and it's the idea that DBV Technologies' decline is expected to accelerate, with revenues forecast to fall at an annualised rate of 59% to the end of 2024. This tops off a historical decline of 18% a year over the past five years. Compare this against analyst estimates for companies in the broader industry, which suggest that revenues (in aggregate) are expected to grow 35% annually. So while a broad number of companies are forecast to grow, unfortunately DBV Technologies is expected to see its sales affected worse than other companies in the industry.

The Bottom Line

The most important thing to note from this downgrade is that the consensus increased its forecast losses this year, suggesting all may not be well at DBV Technologies. Regrettably, they also downgraded their revenue estimates, and the latest forecasts imply the business will grow sales slower than the wider market. The increasing price target is not intuitively what we would expect to see, given these downgrades, and we'd suggest shareholders revisit their investment thesis before making a decision.

That said, the analysts might have good reason to be negative on DBV Technologies, given a short cash runway. Learn more, and discover the 2 other warning signs we've identified, for free on our platform here.

Another way to search for interesting companies that could be reaching an inflection point is to track whether management are buying or selling, with our free list of growing companies that insiders are buying.

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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.