kr34.00: That's What Analysts Think Sedana Medical AB (publ) (STO:SEDANA) Is Worth After Its Latest Results

As you might know, Sedana Medical AB (publ) (STO:SEDANA) last week released its latest quarterly, and things did not turn out so great for shareholders. Revenues missed expectations somewhat, coming in at kr40m, but statutory earnings fell catastrophically short, with a loss of kr0.22 some 20% larger than what the analysts had predicted. 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

See our latest analysis for Sedana Medical

Following the latest results, Sedana Medical's two analysts are now forecasting revenues of kr235.7m in 2025. This would be a substantial 35% improvement in revenue compared to the last 12 months. Losses are predicted to fall substantially, shrinking 53% to kr0.27. Yet prior to the latest earnings, the analysts had been forecasting revenues of kr238.2m and losses of kr0.44 per share in 2025. While the revenue estimates were largely unchanged, sentiment seems to have improved, with the analysts upgrading their numbers and making a very favorable reduction to losses per share in particular.

The consensus price target fell 5.6% to kr34.00despite the forecast for smaller losses next year. It looks like the ongoing lack of profitability is starting to weigh on valuations.

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 Sedana Medical's rate of growth is expected to accelerate meaningfully, with the forecast 27% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 11% 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 18% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Sedana Medical is expected to grow much faster than its industry.

The Bottom Line

The most important thing to take away is that the analysts reconfirmed 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. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have analyst estimates for Sedana Medical going out as far as 2026, and you can see them free on our platform here.

Don't forget that there may still be risks. For instance, we've identified 1 warning sign for Sedana Medical that you should be aware of.

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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.