Bullish: This Analyst Just Lifted Their Cellink AB (publ) (STO:CLNK B) Outlook For Next Year

Shareholders in Cellink AB (publ) (STO:CLNK B) may be thrilled to learn that the covering analyst has just delivered a major upgrade to their near-term forecasts. The consensus statutory numbers for both revenue and earnings per share (EPS) increased, with their view clearly much more bullish on the company's business prospects. Cellink has also found favour with investors, with the stock up a notable 14% to kr505 over the past week. Could this upgrade be enough to drive the stock even higher?

Following the upgrade, the latest consensus from Cellink's one analyst is for revenues of kr1.8b in 2022, which would reflect a substantial 279% improvement in sales compared to the last 12 months. The losses are expected to disappear over the next year or so, with forecasts for a profit of kr2.86 per share next year. Prior to this update, the analyst had been forecasting revenues of kr1.3b and earnings per share (EPS) of kr2.35 in 2022. There has definitely been an improvement in perception recently, with the analyst substantially increasing both their earnings and revenue estimates.

View our latest analysis for Cellink

It will come as no surprise to learn that the analyst has increased their price target for Cellink 9.1% to kr600 on the back of these upgrades.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. It's clear from the latest estimates that Cellink's rate of growth is expected to accelerate meaningfully, with the forecast 81% annualised revenue growth to the end of 2022 noticeably faster than its historical growth of 64% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 32% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Cellink is expected to grow much faster than its industry.

The Bottom Line

The biggest takeaway for us from these new estimates is that the analyst upgraded their earnings per share estimates, with improved earnings power expected for next year. They also upgraded their revenue estimates for next year, and sales are expected to grow faster than the wider market. With a serious upgrade to expectations and a rising price target, it might be time to take another look at Cellink.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have analyst estimates for Cellink going out as far as 2023, 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.

If you’re looking to trade Cellink, open an account with the lowest-cost* platform trusted by professionals, Interactive Brokers. Their clients from over 200 countries and territories trade stocks, options, futures, forex, bonds and funds worldwide from a single integrated account. Promoted

This article by Simply Wall St is general in nature. 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.
^*Interactive Brokers Rated Lowest Cost Broker by StockBrokers.com Annual Online Review 2020

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.