Metacon AB (publ) (STO:META) Just Reported, And Analysts Assigned A kr0.60 Price Target

Shareholders in Metacon AB (publ) (STO:META) had a terrible week, as shares crashed 21% to kr0.43 in the week since its latest third-quarter results. Revenues fell badly short of expectations, with revenue of kr41m being some 51% below what the analyst had forecast. Statutory losses were in line with forecasts, with Metacon losing kr0.01 a share. The analyst typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analyst has changed their mind on Metacon after the latest results.

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After the latest results, the single analyst covering Metacon are now predicting revenues of kr476.3m in 2026. If met, this would reflect a huge 186% improvement in revenue compared to the last 12 months. Yet prior to the latest earnings, the analyst had been forecasting revenues of kr637.0m and losses of kr0.04 per share in 2026. Overall, while there's been a pretty serious reduction to revenue estimates, the consensus now no longer provides an EPS estimate. This implies that after the latest results, the market believes revenue is more important.

See our latest analysis for Metacon

Intriguingly,the analyst has cut their price target 14% to kr0.60 showing a clear decline in sentiment around Metacon's valuation.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. It's clear from the latest estimates that Metacon's rate of growth is expected to accelerate meaningfully, with the forecast 132% annualised revenue growth to the end of 2026 noticeably faster than its historical growth of 44% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 8.4% annually. 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 downgraded their revenue estimates for next year. Regrettably, they also downgraded their revenue estimates, but the latest forecasts still imply the business will grow faster than the wider industry. Yet - earnings are more important to the intrinsic value of the business. The consensus price target fell measurably, with the analyst seemingly not reassured by the latest results, leading to a lower estimate of Metacon's future valuation.

One Metacon broker/analyst has provided estimates out to 2027, which can be seen for free on our platform here.

And what about risks? Every company has them, and we've spotted 3 warning signs for Metacon (of which 2 shouldn't be ignored!) you should know about.

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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.