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

The latest analyst coverage could presage a bad day for Inventiva S.A. (EPA:IVA), with the analysts making across-the-board cuts to their statutory estimates that might leave shareholders a little shell-shocked. This report focused on revenue estimates, and it looks as though the consensus view of the business has become substantially more conservative.

Following the latest downgrade, the six analysts covering Inventiva provided consensus estimates of €3.6m revenue in 2023, which would reflect a stressful 81% decline on its sales over the past 12 months. Before the latest update, the analysts were foreseeing €5.7m of revenue in 2023. The consensus view seems to have become more pessimistic on Inventiva, noting the sizeable cut to revenue estimates in this update.

Check out our latest analysis for Inventiva

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. These estimates imply that sales are expected to slow, with a forecast annualised revenue decline of 81% by the end of 2023. This indicates a significant reduction from annual 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 22% 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. Often, one downgrade can set off a daisy-chain of cuts, especially if an industry is in decline. So we wouldn't be surprised if the market became a lot more cautious on Inventiva after today.

But wait - there's more! We have estimates for Inventiva from its six analysts out until 2025, and you can see them 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.