Need To Know: Analysts Are Much More Bullish On BioGaia AB (publ) (STO:BIOG B) Revenues

BioGaia AB (publ) (STO:BIOG B) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's statutory forecasts. The consensus estimated revenue numbers rose, with their view now clearly much more bullish on the company's business prospects.

Following the upgrade, the most recent consensus for BioGaia from its dual analysts is for revenues of kr975m in 2022 which, if met, would be a major 24% increase on its sales over the past 12 months. Per-share earnings are expected to shoot up 20% to kr11.70. Before this latest update, the analysts had been forecasting revenues of kr884m and earnings per share (EPS) of kr10.76 in 2022. Sentiment certainly seems to have improved in recent times, with a substantial gain in revenue and a modest lift to earnings per share estimates.

See our latest analysis for BioGaia

Of course, another way to look at these forecasts is to place them into context against the industry itself. The analysts are definitely expecting BioGaia's growth to accelerate, with the forecast 24% annualised growth to the end of 2022 ranking favourably alongside historical growth of 6.9% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 28% annually. BioGaia is expected to grow at about the same rate as its industry, so it's not clear that we can draw any conclusions from its growth relative to competitors.

The Bottom Line

The biggest takeaway for us from these new estimates is that analysts upgraded their earnings per share estimates, with improved earnings power expected for this year. They also upgraded their revenue forecasts, although the latest estimates suggest that BioGaia will grow in line with the overall 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 BioGaia.

Still, the long-term prospects of the business are much more relevant than next year's earnings. We have analyst estimates for BioGaia going out as far as 2024, 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 that insiders are buying.

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