Analysts Have Just Cut Their Starbreeze AB (publ) (STO:STAR B) Revenue Estimates By 13%

One thing we could say about the analysts on Starbreeze AB (publ) (STO:STAR B) - they aren't optimistic, having just made a major negative revision to their near-term (statutory) forecasts for the organization. Revenue estimates were cut sharply as the analysts signalled a weaker outlook - perhaps a sign that investors should temper their expectations as well.

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Following the downgrade, the most recent consensus for Starbreeze from its twin analysts is for revenues of kr246m in 2026 which, if met, would be a meaningful 8.5% increase on its sales over the past 12 months. Prior to the latest estimates, the analysts were forecasting revenues of kr283m in 2026. The consensus view seems to have become more pessimistic on Starbreeze, noting the measurable cut to revenue estimates in this update.

Check out our latest analysis for Starbreeze

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. We would highlight that Starbreeze's revenue growth is expected to slow, with the forecast 6.8% annualised growth rate until the end of 2026 being well below the historical 23% p.a. growth over the last five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 14% annually. Factoring in the forecast slowdown in growth, it seems obvious that Starbreeze is also expected to grow slower than other industry participants.

The Bottom Line

The clear low-light was that analysts slashing their revenue forecasts for Starbreeze next year. They also expect company revenue to perform worse than the wider market. Given the stark change in sentiment, we'd understand if investors became more cautious on Starbreeze after today.

Still got questions? We have estimates for Starbreeze from its twin analysts out until 2027, and you can see them free on our platform here.

Of course, seeing company management invest large sums of money in a stock can be just as useful as knowing whether analysts are downgrading their estimates. So you may also wish to search this free list of stocks with high insider ownership.

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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.