BioArctic AB (publ) (STO:BIOA B) Analysts Are Way More Bearish Than They Used To Be

One thing we could say about the analysts on BioArctic AB (publ) (STO:BIOA B) - they aren't optimistic, having just made a major negative revision to their near-term (statutory) forecasts for the organization. There was a fairly draconian cut to their revenue estimates, perhaps an implicit admission that previous forecasts were much too optimistic. At kr302, shares are up 6.9% in the past 7 days. Investors could be forgiven for changing their mind on the business following the downgrade; but it's not clear if the revised forecasts will lead to selling activity.

Following the downgrade, the latest consensus from BioArctic's four analysts is for revenues of kr633m in 2023, which would reflect a credible 2.0% improvement in sales compared to the last 12 months. Prior to the latest estimates, the analysts were forecasting revenues of kr710m in 2023. The consensus view seems to have become more pessimistic on BioArctic, noting the measurable cut to revenue estimates in this update.

Check out our latest analysis for BioArctic

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. One thing stands out from these estimates, which is that BioArctic is forecast to grow faster in the future than it has in the past, with revenues expected to display 4.1% annualised growth until the end of 2023. If achieved, this would be a much better result than the 19% annual decline over the past five years. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 26% annually for the foreseeable future. Although BioArctic's revenues are expected to improve, it seems that the analysts are still bearish on the business, forecasting it to grow slower than the broader 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. After a cut like that, investors could be forgiven for thinking analysts are a lot more bearish on BioArctic, and a few readers might choose to steer clear of the stock.

But wait - there's more! At least one of BioArctic's four analysts has provided estimates out to 2025, 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.