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. Revenue estimates were cut sharply as analysts signalled a weaker outlook - perhaps a sign that investors should temper their expectations as well.

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Following the downgrade, the consensus from seven analysts covering Inventiva is for revenues of €12m in 2025, implying a disturbing 29% decline in sales compared to the last 12 months. Prior to the latest estimates, the analysts were forecasting revenues of €14m in 2025. It looks like forecasts have become a fair bit less optimistic on Inventiva, given the measurable cut to revenue estimates.

View our latest analysis for Inventiva

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 sales are expected to reverse, with a forecast 49% annualised revenue decline to the end of 2025. That is a notable change from historical growth of 22% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 26% annually for the foreseeable future. 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. Given the stark change in sentiment, we'd understand if investors became more cautious on Inventiva after today.

That said, the analysts might have good reason to be negative on Inventiva, given major dilution from new stock issuance in the past year. For more information, you can click here to discover this and the 2 other flags we've identified.

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 with high insider ownership.

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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.