Genovis AB (publ.) (STO:GENO) Analysts Are More Bearish Than They Used To Be

Market forces rained on the parade of Genovis AB (publ.) (STO:GENO) shareholders today, when the analysts downgraded their forecasts for next year. Both revenue and earnings per share (EPS) forecasts went under the knife, suggesting analysts have soured majorly on the business.

Following the downgrade, the current consensus from Genovis AB (publ.)'s three analysts is for revenues of kr221m in 2024 which - if met - would reflect a sizeable 40% increase on its sales over the past 12 months. Statutory earnings per share are presumed to surge 225% to kr2.70. Before this latest update, the analysts had been forecasting revenues of kr323m and earnings per share (EPS) of kr3.05 in 2024. Indeed, we can see that the analysts are a lot more bearish about Genovis AB (publ.)'s prospects, administering a sizeable cut to revenue estimates and slashing their EPS estimates to boot.

Check out our latest analysis for Genovis AB (publ.)

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Genovis AB (publ.)'s past performance and to peers in the same industry. We can infer from the latest estimates that forecasts expect a continuation of Genovis AB (publ.)'shistorical trends, as the 31% annualised revenue growth to the end of 2024 is roughly in line with the 29% annual revenue growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 11% annually. So although Genovis AB (publ.) is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider industry.

The Bottom Line

The biggest issue in the new estimates is that analysts have reduced their earnings per share estimates, suggesting business headwinds lay ahead for Genovis AB (publ.). Unfortunately, analysts also downgraded their revenue estimates, although our data indicates revenues are expected to perform better than the wider market. After a cut like that, investors could be forgiven for thinking analysts are a lot more bearish on Genovis AB (publ.), and a few readers might choose to steer clear of the stock.

Still, the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple Genovis AB (publ.) analysts - going out to 2025, 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 downgrading their estimates. So you may also wish to search this free list of stocks 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.