Analyst Estimates: Here's What Brokers Think Of Hansa Biopharma AB (publ) (STO:HNSA) After Its Yearly Report

It's been a pretty great week for Hansa Biopharma AB (publ) (STO:HNSA) shareholders, with its shares surging 12% to kr38.84 in the week since its latest full-year results. The results look positive overall; while revenues of kr134m were in line with analyst predictions, statutory losses were 2.7% smaller than expected, with Hansa Biopharma losing kr15.83 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

View our latest analysis for Hansa Biopharma

Following the latest results, Hansa Biopharma's four analysts are now forecasting revenues of kr226.2m in 2024. This would be a huge 69% improvement in revenue compared to the last 12 months. The loss per share is expected to greatly reduce in the near future, narrowing 35% to kr10.34. Yet prior to the latest earnings, the analysts had been forecasting revenues of kr270.2m and losses of kr11.18 per share in 2024. We can see there's definitely been a change in sentiment in this update, with the analysts administering a meaningful downgrade to next year's revenue estimates, while at the same time reducing their loss estimates.

There was no major change to the kr113average price target, suggesting that the adjustments to revenue and earnings are not expected to have a long-term impact on the business. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. Currently, the most bullish analyst values Hansa Biopharma at kr174 per share, while the most bearish prices it at kr57.00. We would probably assign less value to the analyst forecasts in this situation, because such a wide range of estimates could imply that the future of this business is difficult to value accurately. As a result it might not be a great idea to make decisions based on the consensus price target, which is after all just an average of this wide range of estimates.

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. We can infer from the latest estimates that forecasts expect a continuation of Hansa Biopharma'shistorical trends, as the 69% annualised revenue growth to the end of 2024 is roughly in line with the 66% annual growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 18% per year. So although Hansa Biopharma is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider industry.

The Bottom Line

The most important thing to take away is that the analysts reconfirmed their loss per share estimates for next year. They also downgraded Hansa Biopharma's revenue estimates, but industry data suggests that it is expected to grow faster than the wider industry. With that said, earnings are more important to the long-term value of the business. The consensus price target held steady at kr113, 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 Hansa Biopharma going out to 2026, and you can see them free on our platform here..

Don't forget that there may still be risks. For instance, we've identified 4 warning signs for Hansa Biopharma (2 are a bit unpleasant) you should be aware of.

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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.