These Analysts Think Inventiva S.A.'s (EPA:IVA) Sales Are Under Threat

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 €11m in 2025, implying a stressful 35% decline in sales compared to the last 12 months. Before the latest update, the analysts were foreseeing €12m of revenue in 2025. It looks like forecasts have become a fair bit less optimistic on Inventiva, given the measurable cut to revenue estimates.

Check out our latest analysis for Inventiva

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Inventiva's past performance and to peers in the same industry. We would highlight that sales are expected to reverse, with a forecast 58% annualised revenue decline to the end of 2025. That is a notable change from historical growth of 22% 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 27% per year. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Inventiva is expected to lag the wider industry.

The Bottom Line

The clear low-light was that analysts slashing their revenue forecasts for Inventiva 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.

That said, the analysts might have good reason to be negative on Inventiva, given major dilution from new stock issuance in the past year. Learn more, and discover the 2 other risks we've identified, for free on our platform here.

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.