Earnings Update: Here's Why Analysts Just Lifted Their Metacon AB (publ) (STO:META) Price Target To kr0.30

Investors in Metacon AB (publ) (STO:META) had a good week, as its shares rose 9.3% to close at kr0.28 following the release of its second-quarter results. It looks like a positive result overall, with revenues of kr62m beating forecasts by 3.9%. Statutory losses of kr0.01 per share were roughly in line with what the analyst had forecast. This is an important time for investors, as they can track a company's performance in its report, look at what expert is forecasting for next year, and see if there has been any change to expectations for the business. So we gathered the latest post-earnings forecasts to see what estimate suggests is in store for next year.

This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality.

Taking into account the latest results, the most recent consensus for Metacon from sole analyst is for revenues of kr296.5m in 2025. If met, it would imply a sizeable 131% increase on its revenue over the past 12 months. Statutory losses are forecast to balloon 65% to kr0.03 per share. Yet prior to the latest earnings, the analyst had been anticipated revenues of kr291.3m and break-even in 2025. The analyst seem to have become more bearish following the latest results. While there were no changes to revenue forecasts, there was a EPS estimates.

Check out our latest analysis for Metacon

Although the analyst are now forecasting higher losses, the average price target rose 30% to 0.23, which could indicate that these losses are expected to be "one-off", or are not anticipated to have a longer-term impact on the business.

Of course, another way to look at these forecasts is to place them into context against the industry itself. It's clear from the latest estimates that Metacon's rate of growth is expected to accelerate meaningfully, with the forecast 4x annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 42% p.a. over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 7.8% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Metacon is expected to grow much faster than its industry.

The Bottom Line

The most important thing to take away is that the analyst increased their loss per share estimates for next year. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. There was also a nice increase in the price target, with the analyst clearly feeling that the intrinsic value of the business is improving.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At least one analyst has provided forecasts out to 2027, which can be seen for free on our platform here.

Plus, you should also learn about the 4 warning signs we've spotted with Metacon (including 3 which can't be ignored) .

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.