Analysts Expect Breakeven For OptiCept Technologies AB (publ) (STO:OPTI) Before Long

OptiCept Technologies AB (publ) (STO:OPTI) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. OptiCept Technologies AB (publ) develops a technology that controls and applies electrical pulses to optimize various biological processes in Sweden and internationally. The kr367m market-cap company’s loss lessened since it announced a kr80m loss in the full financial year, compared to the latest trailing-twelve-month loss of kr67m, as it approaches breakeven. The most pressing concern for investors is OptiCept Technologies' path to profitability – when will it breakeven? Below we will provide a high-level summary of the industry analysts’ expectations for the company.

Check out our latest analysis for OptiCept Technologies

Consensus from 2 of the Swedish Machinery analysts is that OptiCept Technologies is on the verge of breakeven. They expect the company to post a final loss in 2025, before turning a profit of kr1.9m in 2026. So, the company is predicted to breakeven approximately 2 years from today. What rate will the company have to grow year-on-year in order to breakeven on this date? Using a line of best fit, we calculated an average annual growth rate of 86%, which signals high confidence from analysts. If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.

Underlying developments driving OptiCept Technologies' growth isn’t the focus of this broad overview, however, keep in mind that typically a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.

Before we wrap up, there’s one aspect worth mentioning. The company has managed its capital prudently, with debt making up 5.5% of equity. This means that it has predominantly funded its operations from equity capital, and its low debt obligation reduces the risk around investing in the loss-making company.

Next Steps:

This article is not intended to be a comprehensive analysis on OptiCept Technologies, so if you are interested in understanding the company at a deeper level, take a look at OptiCept Technologies' company page on Simply Wall St. We've also put together a list of relevant factors you should further research:

1. Valuation: What is OptiCept Technologies worth today? Has the future growth potential already been factored into the price? The intrinsic value infographic in our free research report helps visualize whether OptiCept Technologies is currently mispriced by the market.
2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on OptiCept Technologies’s board and the CEO’s background.
3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks 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.