Revenue Downgrade: Here's What Analysts Forecast For Genfit S.A. (EPA:GNFT)

Today is shaping up negative for Genfit S.A. (EPA:GNFT) shareholders, with the analysts delivering a substantial negative revision to this year's forecasts. 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 most recent consensus for Genfit from its four analysts is for revenues of €64m in 2023 which, if met, would be a sizeable 143% increase on its sales over the past 12 months. Before the latest update, the analysts were foreseeing €80m of revenue in 2023. The consensus view seems to have become more pessimistic on Genfit, noting the sizeable cut to revenue estimates in this update.

Check out our latest analysis for Genfit

Additionally, the consensus price target for Genfit increased 5.4% to €9.37, showing a clear increase in optimism from the analysts involved. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. The most optimistic Genfit analyst has a price target of €11.50 per share, while the most pessimistic values it at €7.90. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Genfit shareholders.

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. It's clear from the latest estimates that Genfit's rate of growth is expected to accelerate meaningfully, with the forecast 143% annualised revenue growth to the end of 2023 noticeably faster than its historical growth of 42% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 23% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Genfit is expected to grow much faster than its industry.

The Bottom Line

The most important thing to take away is that analysts cut their revenue estimates for this year. They're also forecasting more rapid revenue growth than the wider market. There was also a nice increase in the price target, with analysts apparently feeling that the intrinsic value of the business is improving. Overall, given the drastic downgrade to this year's forecasts, we'd be feeling a little more wary of Genfit going forwards.

Need some more information? We have estimates for Genfit from its four analysts out until 2025, and you can see them 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.