Analyst Forecasts Just Became More Bearish On Inventiva S.A. (EPA:IVA)

One thing we could say about the analysts on Inventiva S.A. (EPA:IVA) - they aren't optimistic, having just made a major negative revision to their near-term (statutory) forecasts for the organization. This report focused on revenue estimates, and it looks as though the consensus view of the business has become substantially more conservative. Surprisingly the share price has been buoyant, rising 10% to €2.65 in the past 7 days. With such a sharp increase, it seems brokers may have seen something that is not yet being priced in by the wider market.

Following the downgrade, the consensus from five analysts covering Inventiva is for revenues of €1.6m in 2023, implying a concerning 92% decline in sales compared to the last 12 months. Before the latest update, the analysts were foreseeing €3.6m of revenue in 2023. It looks like forecasts have become a fair bit less optimistic on Inventiva, given the pretty serious reduction to revenue estimates.

Check out our latest analysis for Inventiva

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. We would highlight that sales are expected to reverse, with a forecast 92% annualised revenue decline to the end of 2023. That is a notable change from historical growth of 7.2% 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 24% per year. It's pretty clear that Inventiva's revenues are expected to perform substantially worse than the wider industry.

The Bottom Line

The most important thing to take away is that analysts cut their revenue estimates for this year. They're also anticipating slower revenue growth than the wider market. Overall, given the drastic downgrade to this year's forecasts, we'd be feeling a little more wary of Inventiva going forwards.

Looking to learn more? We have estimates for Inventiva from its five 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.