Devyser Diagnostics AB (publ) (STO:DVYSR) Just Reported And Analysts Have Been Cutting Their Estimates

It's been a pretty great week for Devyser Diagnostics AB (publ) (STO:DVYSR) shareholders, with its shares surging 16% to kr92.40 in the week since its latest full-year results. Revenues were in line with expectations, at kr169m, while statutory losses ballooned to kr3.29 per share. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Devyser Diagnostics after the latest results.

Check out our latest analysis for Devyser Diagnostics

Taking into account the latest results, the consensus forecast from Devyser Diagnostics' three analysts is for revenues of kr223.8m in 2024. This reflects a huge 32% improvement in revenue compared to the last 12 months. The loss per share is expected to greatly reduce in the near future, narrowing 54% to kr1.50. Yet prior to the latest earnings, the analysts had been forecasting revenues of kr245.1m and losses of kr0.15 per share in 2024. So it's pretty clear the analysts have mixed opinions on Devyser Diagnostics after this update; revenues were downgraded and per-share losses expected to increase.

The average price target was broadly unchanged at kr114, perhaps implicitly signalling that the weaker earnings outlook is not expected to have a long-term impact on the valuation. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. Currently, the most bullish analyst values Devyser Diagnostics at kr128 per share, while the most bearish prices it at kr98.40. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

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 Devyser Diagnostics' growth to accelerate, with the forecast 32% annualised growth to the end of 2024 ranking favourably alongside historical growth of 22% 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. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Devyser Diagnostics to grow faster than the wider industry.

The Bottom Line

The most important thing to take away is that the analysts increased their loss per share estimates for next year. They also downgraded Devyser Diagnostics' revenue estimates, but industry data suggests that it is expected to grow faster than the wider industry. The consensus price target held steady at kr114, with the latest estimates not enough to have an impact on their price targets.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for Devyser Diagnostics going out to 2026, and you can see them free on our platform here..

Another thing to consider is whether management and directors have been buying or selling stock recently. We provide an overview of all open market stock trades for the last twelve months on our platform, here.

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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.