Analysts Are More Bearish On ArcticZymes Technologies ASA (OB:AZT) Than They Used To Be

Market forces rained on the parade of ArcticZymes Technologies ASA (OB:AZT) shareholders today, when the analysts downgraded their forecasts for next year. Both revenue and earnings per share (EPS) forecasts went under the knife, suggesting the analysts have soured majorly on the business.

Following the downgrade, the latest consensus from ArcticZymes Technologies' two analysts is for revenues of kr122m in 2025, which would reflect a decent 11% improvement in sales compared to the last 12 months. Statutory earnings per share are presumed to swell 18% to kr0.16. Before this latest update, the analysts had been forecasting revenues of kr140m and earnings per share (EPS) of kr0.59 in 2025. It looks like analyst sentiment has declined substantially, with a substantial drop in revenue estimates and a pretty serious decline to earnings per share numbers as well.

View our latest analysis for ArcticZymes Technologies

It'll come as no surprise then, to learn that the analysts have cut their price target 30% to kr16.00.

Of course, another way to look at these forecasts is to place them into context against the industry itself. The period to the end of 2025 brings more of the same, according to the analysts, with revenue forecast to display 8.3% growth on an annualised basis. That is in line with its 10% annual growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 43% per year. So it's pretty clear that ArcticZymes Technologies is expected to grow slower than similar companies in the same 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. Unfortunately analysts also downgraded their revenue estimates, and industry data suggests that ArcticZymes Technologies' revenues are expected to grow slower than the wider market. With a serious cut to next year's expectations and a falling price target, we wouldn't be surprised if investors were becoming wary of ArcticZymes Technologies.

Still, the long-term prospects of the business are much more relevant than next year's earnings. We have analyst estimates for ArcticZymes Technologies going out as far as 2026, 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 backed by insiders.

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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.