Analyst Estimates: Here's What Brokers Think Of CellaVision AB (publ) (STO:CEVI) After Its Annual Report

CellaVision AB (publ) (STO:CEVI) just released its latest annual report and things are not looking great. Results look to have been somewhat negative - revenue fell 2.5% short of analyst estimates at kr723m, and statutory earnings of kr5.90 per share missed forecasts by 3.2%. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on CellaVision after the latest results.

Check out our latest analysis for CellaVision

After the latest results, the four analysts covering CellaVision are now predicting revenues of kr809.3m in 2025. If met, this would reflect a meaningful 12% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to leap 25% to kr7.37. Yet prior to the latest earnings, the analysts had been anticipated revenues of kr848.7m and earnings per share (EPS) of kr8.08 in 2025. The analysts are less bullish than they were before these results, given the reduced revenue forecasts and the small dip in earnings per share expectations.

The analysts made no major changes to their price target of kr253, suggesting the downgrades are not expected to have a long-term impact on CellaVision's valuation. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic CellaVision analyst has a price target of kr270 per share, while the most pessimistic values it at kr220. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting CellaVision is an easy business to forecast or the the analysts are all using similar assumptions.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the CellaVision's past performance and to peers in the same industry. It's clear from the latest estimates that CellaVision's rate of growth is expected to accelerate meaningfully, with the forecast 12% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 9.8% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to see revenue growth of 17% annually. So it's clear that despite the acceleration in growth, CellaVision is expected to grow meaningfully slower than the industry average.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for CellaVision. Unfortunately, they also downgraded their revenue estimates, and our data indicates underperformance compared to the wider industry. Even so, earnings per share are more important to the intrinsic value of the business. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple CellaVision analysts - going out to 2027, and you can see them free on our platform here.

Another thing to consider is whether management and directors have been buying or selling stock recently. We provide an overview of all open market stock trades for the last twelve months 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.