Here's What Analysts Are Forecasting For CellaVision AB (publ) (STO:CEVI) After Its Second-Quarter Results

Shareholders might have noticed that CellaVision AB (publ) (STO:CEVI) filed its second-quarter result this time last week. The early response was not positive, with shares down 4.4% to kr173 in the past week. Revenues of kr191m were in line with forecasts, although statutory earnings per share (EPS) came in below expectations at kr1.58, missing estimates by 4.0%. The analysts 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

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After the latest results, the five analysts covering CellaVision are now predicting revenues of kr777.7m in 2025. If met, this would reflect a modest 3.5% improvement in revenue compared to the last 12 months. Per-share earnings are expected to rise 8.4% to kr6.87. In the lead-up to this report, the analysts had been modelling revenues of kr780.2m and earnings per share (EPS) of kr7.07 in 2025. The analysts seem to have become a little more negative on the business after the latest results, given the minor downgrade to their earnings per share numbers for next year.

View our latest analysis for CellaVision

The consensus price target held steady at kr228, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. Currently, the most bullish analyst values CellaVision at kr240 per share, while the most bearish prices it at kr200. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.

Of course, another way to look at these forecasts is to place them into context against the industry itself. It's pretty clear that there is an expectation that CellaVision's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 7.1% growth on an annualised basis. This is compared to a historical growth rate of 9.7% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 19% per year. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than CellaVision.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for CellaVision. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that CellaVision's revenue is expected to perform worse than the wider industry. 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.

With that in mind, we wouldn't be too quick to come to a conclusion on CellaVision. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for CellaVision going out to 2027, and you can see them free on our platform here..

You can also see our analysis of CellaVision's Board and CEO remuneration and experience, and whether company insiders have been buying stock.

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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.