Analysts Have Been Trimming Their OrganoClick AB (publ) (STO:ORGC) Price Target After Its Latest Report

OrganoClick AB (publ) (STO:ORGC) missed earnings with its latest quarterly results, disappointing overly-optimistic forecasts. It looks like a pretty negative result overall with revenues of kr22m coming in 17% short of analyst estimates. Statutory losses were kr0.08 per share, 14% larger than what the analyst expected. 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. So we collected the latest post-earnings statutory consensus estimate to see what could be in store for next year.

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Taking into account the latest results, the current consensus from OrganoClick's solitary analyst is for revenues of kr123.0m in 2026. This would reflect a meaningful 13% increase on its revenue over the past 12 months. Before this latest report, the consensus had been expecting revenues of kr131.0m and kr0.04 per share in losses. So we can see that while the consensus made a minor downgrade to revenue estimates, it no longer provides an earnings per share estimate. This suggests that the market is now more focused on revenue after the latest result.

Check out our latest analysis for OrganoClick

The average price target fell 20% to kr2.00, withthe analyst clearly having become less optimistic about OrganoClick'sprospects following its latest earnings.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. The analyst is definitely expecting OrganoClick's growth to accelerate, with the forecast 9.9% annualised growth to the end of 2026 ranking favourably alongside historical growth of 5.2% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 1.4% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analyst also expect OrganoClick to grow faster than the wider 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. With that said, earnings are more important to the long-term value of the business. Furthermore, the analyst also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.

We have estimates for OrganoClick from one covering analyst, and you can see them free on our platform here.

However, before you get too enthused, we've discovered 4 warning signs for OrganoClick 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.