Industry Analysts Just Made A Sizeable Upgrade To Their Starbreeze AB (publ) (STO:STAR B) Revenue Forecasts

Starbreeze AB (publ) (STO:STAR B) shareholders will have a reason to smile today, with the analysts making substantial upgrades to next year's statutory forecasts. The consensus estimated revenue numbers rose, with their view now clearly much more bullish on the company's business prospects.

Following the latest upgrade, the dual analysts covering Starbreeze provided consensus estimates of kr174m revenue in 2025, which would reflect a considerable 17% decline on its sales over the past 12 months. Yet prior to the latest estimates, the analysts had been forecasting revenues of kr141m and losses of kr0.05 per share in 2025. There has definitely been an improvement in perception recently, with the analysts substantially increasing both their earnings and revenue estimates.

Check out our latest analysis for Starbreeze

Of course, another way to look at these forecasts is to place them into context against the industry itself. These estimates imply that sales are expected to slow, with a forecast annualised revenue decline of 14% by the end of 2025. This indicates a significant reduction from annual growth of 25% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 5.1% annually for the foreseeable future. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Starbreeze is expected to lag the wider industry.

The Bottom Line

The most important thing to take away from this upgrade is that there is now an expectation for Starbreeze to become profitable next year, compared to previous expectations of a loss. Fortunately, they also upgraded their revenue estimates, and are forecasting revenues to grow slower than the wider market. Seeing the dramatic upgrade to next year's forecasts, it might be time to take another look at Starbreeze.

Even so, the longer term trajectory of the business is much more important for the value creation of shareholders. We have analyst estimates for Starbreeze going out as far as 2026, and you can see them free on our platform here.

Another way to search for interesting companies that could be reaching an inflection point is to track whether management are buying or selling, with our free list of growing companies backed by insiders.

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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.