Time To Worry? Analysts Just Downgraded Their BioInvent International AB (publ) (STO:BINV) Outlook

The latest analyst coverage could presage a bad day for BioInvent International AB (publ) (STO:BINV), with the analysts making across-the-board cuts to their statutory estimates that might leave shareholders a little shell-shocked. Revenue estimates were cut sharply as analysts signalled a weaker outlook - perhaps a sign that investors should temper their expectations as well.

Following the latest downgrade, the current consensus, from the dual analysts covering BioInvent International, is for revenues of kr84m in 2022, which would reflect a disturbing 72% reduction in BioInvent International's sales over the past 12 months. Before the latest update, the analysts were foreseeing kr134m of revenue in 2022. The consensus view seems to have become more pessimistic on BioInvent International, noting the pretty serious reduction to revenue estimates in this update.

Check out our latest analysis for BioInvent International

There was no particular change to the consensus price target of kr102, with BioInvent International's latest outlook seemingly not enough to result in a change of valuation. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. There are some variant perceptions on BioInvent International, with the most bullish analyst valuing it at kr115 and the most bearish at kr89.00 per share. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or that the analysts have a clear view on its prospects.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. These estimates imply that sales are expected to slow, with a forecast annualised revenue decline of 92% by the end of 2022. This indicates a significant reduction from annual growth of 30% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 19% per year. It's pretty clear that BioInvent International's revenues are expected to perform substantially worse than the wider industry.

The Bottom Line

The most important thing to take away is that analysts cut their revenue estimates for this 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 BioInvent International after today.

Looking to learn more? At least one of BioInvent International's dual analysts has provided estimates out to 2024, which can be seen for 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 that insiders are buying.

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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.