The latest analyst coverage could presage a bad day for OSE Immunotherapeutics SA (EPA:OSE), 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 three analysts covering OSE Immunotherapeutics provided consensus estimates of €13m revenue in 2022, which would reflect a concerning 52% decline on its sales over the past 12 months. Prior to the latest estimates, the analysts were forecasting revenues of €16m in 2022. It looks like forecasts have become a fair bit less optimistic on OSE Immunotherapeutics, given the pretty serious reduction to revenue estimates.
Of course, another way to look at these forecasts is to place them into context against the industry itself. These estimates imply that sales are expected to slow, with a forecast annualised revenue decline of 52% by the end of 2022. This indicates a significant reduction from annual growth of 17% 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 34% annually for the foreseeable future. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - OSE Immunotherapeutics is expected to lag 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. After a cut like that, investors could be forgiven for thinking analysts are a lot more bearish on OSE Immunotherapeutics, and a few readers might choose to steer clear of the stock.
But wait - there's more! We have estimates for OSE Immunotherapeutics from its three analysts out until 2024, 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.