Need To Know: Analysts Are Much More Bullish On BioArctic AB (publ) (STO:BIOA B)

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. Consensus estimates suggest investors could expect greatly increased statutory revenues and earnings per share, with the analysts modelling a real improvement in business performance. The market seems to be pricing in some improvement in the business too, with the stock up 8.2% over the past week, closing at kr194. Whether the upgrade is enough to drive the stock price higher is yet to be seen, however.

After this upgrade, BioArctic's six analysts are now forecasting revenues of kr973m in 2025. This would be a huge 482% improvement in sales compared to the last 12 months. Losses are expected to turn into profits real soon, with the analysts forecasting kr3.57 in per-share earnings. Prior to this update, the analysts had been forecasting revenues of kr890m and earnings per share (EPS) of kr2.90 in 2025. There's been a pretty noticeable increase in sentiment, with the analysts upgrading revenues and making a very substantial lift in earnings per share in particular.

Check out our latest analysis for BioArctic

Although the analysts have upgraded their earnings estimates, there was no change to the consensus price target of kr322, suggesting that the forecast performance does not have a long term impact on the company's valuation.

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. The analysts are definitely expecting BioArctic's growth to accelerate, with the forecast 3x annualised growth to the end of 2025 ranking favourably alongside historical growth of 14% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 18% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that BioArctic is expected to grow much faster than its industry.

The Bottom Line

The most important thing to take away from this upgrade is that analysts upgraded their earnings per share estimates for next year, expecting improving business conditions. Fortunately, analysts also upgraded their revenue estimates, and our data indicates sales are expected to perform better than the wider market. Some investors might be disappointed to see that the price target is unchanged, but we feel that improving fundamentals are usually a positive - assuming these forecasts are met! So BioArctic could be a good candidate for more research.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple BioArctic analysts - going out to 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.