Broker Revenue Forecasts For BioArctic AB (publ) (STO:BIOA B) Are Surging Higher

Celebrations may be in order for BioArctic AB (publ) (STO:BIOA B) shareholders, with the analysts delivering a significant upgrade to their statutory estimates for the company. The revenue forecast for this year has experienced a facelift, with analysts now much more optimistic on its sales pipeline.

Following the latest upgrade, the current consensus, from the four analysts covering BioArctic, is for revenues of kr224m in 2022, which would reflect a measurable 3.9% reduction in BioArctic's sales over the past 12 months. Before the latest update, the analysts were foreseeing kr189m of revenue in 2022. It looks like there's been a clear increase in optimism around BioArctic, given the solid increase in revenue forecasts.

Our analysis indicates that BIOA B is potentially undervalued!

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. One thing that stands out from these estimates is that shrinking revenues are expected to moderate over the period ending 2022 compared to the historical decline of 31% per annum over the past five years. Compare this against analyst estimates for companies in the broader industry, which suggest that revenues (in aggregate) are expected to grow 27% annually. So while a broad number of companies are forecast to grow, unfortunately BioArctic is expected to see its sales affected worse than other companies in the industry.

The Bottom Line

The most important thing to take away from this upgrade is that analysts lifted their revenue estimates for this year. They also expect company revenue to perform worse than the wider market. Given that analysts appear to be expecting substantial improvement in the sales pipeline, now could be the right time to take another look at BioArctic.

Thirsting for more data? At least one of BioArctic's four analysts has provided estimates out to 2024, which can be seen for 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 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.