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

Shareholders in BioArctic AB (publ) (STO:BIOA B) may be thrilled to learn that the analysts have just delivered a major upgrade to their near-term forecasts. The analysts greatly increased their revenue estimates, suggesting a stark improvement in business fundamentals. The market seems to be pricing in some improvement in the business too, with the stock up 8.7% over the past week, closing at kr239. 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 kr2.0b in 2025. This would be a sizeable improvement in sales compared to the last 12 months. Losses are expected to turn into profits real soon, with the analysts forecasting kr10.81 in per-share earnings. Previously, the analysts had been modelling revenues of kr1.2b and earnings per share (EPS) of kr5.51 in 2025. There has definitely been an improvement in perception recently, with the analysts substantially increasing both their earnings and revenue estimates.

See our latest analysis for BioArctic

Despite these upgrades, the analysts have not made any major changes to their price target of kr332, suggesting that the higher estimates are not likely to have a long term impact on what the stock is worth.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the BioArctic's past performance and to peers in the same industry. It's clear from the latest estimates that BioArctic's rate of growth is expected to accelerate meaningfully, with the forecast 7x annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 29% p.a. over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 18% per year. 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 this 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. At Simply Wall St, we have a full range of analyst estimates for BioArctic going out to 2027, and you can see them 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 upgrading their estimates. So you may also wish to search this free list of stocks with high insider ownership.

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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.