Need To Know: Analysts Are Much More Bullish On Camurus AB (publ) (STO:CAMX) Revenues

Camurus AB (publ) (STO:CAMX) shareholders will have a reason to smile today, with the analysts making substantial upgrades to next year's forecasts. The analysts have sharply increased their revenue numbers, with a view that Camurus will make substantially more sales than they'd previously expected. Camurus has also found favour with investors, with the stock up a remarkable 19% to kr419 over the past week. We'll be curious to see if these new estimates convince the market to lift the stock price higher still.

Following the upgrade, the most recent consensus for Camurus from its five analysts is for revenues of kr2.1b in 2024 which, if met, would be a sizeable 33% increase on its sales over the past 12 months. Per-share earnings are expected to climb 14% to kr9.42. Previously, the analysts had been modelling revenues of kr1.9b and earnings per share (EPS) of kr8.65 in 2024. Sentiment certainly seems to have improved in recent times, with a decent improvement in revenue and a small increase to earnings per share estimates.

Check out our latest analysis for Camurus

It will come as no surprise to learn that the analysts have increased their price target for Camurus 12% to kr392 on the back of these upgrades.

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. It's pretty clear that there is an expectation that Camurus' revenue growth will slow down substantially, with revenues to the end of 2024 expected to display 25% growth on an annualised basis. This is compared to a historical growth rate of 55% over the past five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 29% annually. Factoring in the forecast slowdown in growth, it looks like Camurus is forecast to grow at about the same rate as the wider industry.

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 next year. They also upgraded their revenue forecasts, although the latest estimates suggest that Camurus will grow in line with the overall market. There was also an increase in the price target, suggesting that there is more optimism baked into the forecasts than there was previously. Seeing the dramatic upgrade to next year's forecasts, it might be time to take another look at Camurus.

Even so, the longer term trajectory of the business is much more important for the value creation of shareholders. At Simply Wall St, we have a full range of analyst estimates for Camurus going out to 2025, 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 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.