Need To Know: The Consensus Just Cut Its Aker BioMarine ASA (OB:AKBM) Estimates For 2025

Market forces rained on the parade of Aker BioMarine ASA (OB:AKBM) shareholders today, when the analysts downgraded their forecasts for this year. Revenue estimates were cut sharply as the analysts signalled a weaker outlook - perhaps a sign that investors should temper their expectations as well. Shares are up 4.1% to kr53.80 in the past week. We'd be curious to see if the downgrade is enough to reverse investor sentiment on the business.

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After the downgrade, the two analysts covering Aker BioMarine are now predicting revenues of US$224m in 2025. If met, this would reflect a meaningful 11% improvement in sales compared to the last 12 months. Losses are expected to turn into profits real soon, with the analysts forecasting US$0.17 in per-share earnings. Previously, the analysts had been modelling revenues of US$254m and earnings per share (EPS) of US$0.22 in 2025. Indeed, we can see that the analysts are a lot more bearish about Aker BioMarine's prospects, administering a substantial drop in revenue estimates and slashing their EPS estimates to boot.

Check out our latest analysis for Aker BioMarine

It'll come as no surprise then, to learn that the analysts have cut their price target 8.9% to US$5.36. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. The most optimistic Aker BioMarine analyst has a price target of US$6.23 per share, while the most pessimistic values it at US$4.49. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Aker BioMarine shareholders.

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. For example, we noticed that Aker BioMarine's rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 15% growth to the end of 2025 on an annualised basis. That is well above its historical decline of 1.8% a year over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in the industry are forecast to see their revenue grow 7.2% per year. Not only are Aker BioMarine's revenues expected to improve, it seems that the analysts are also expecting it to grow faster than the wider industry.

The Bottom Line

The most important thing to take away is that analysts cut their earnings per share estimates, expecting a clear decline in business conditions. While analysts did downgrade their revenue estimates, these forecasts still imply revenues will perform better than the wider market. Furthermore, there was a cut to the price target, suggesting that the latest news has led to more pessimism about the intrinsic value of the business. Given the stark change in sentiment, we'd understand if investors became more cautious on Aker BioMarine after today.

Even so, the longer term trajectory of the business is much more important for the value creation of shareholders. We have analyst estimates for Aker BioMarine going out as far as 2027, 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.