Downgrade: Here's How Analysts See Hansa Biopharma AB (publ) (STO:HNSA) Performing In The Near Term

The latest analyst coverage could presage a bad day for Hansa Biopharma AB (publ) (STO:HNSA), with the analysts making across-the-board cuts to their statutory estimates that might leave shareholders a little shell-shocked. Revenue and earnings per share (EPS) forecasts were both revised downwards, with the analysts seeing grey clouds on the horizon.

Following the downgrade, the most recent consensus for Hansa Biopharma from its five analysts is for revenues of kr333m in 2025 which, if met, would be a substantial 94% increase on its sales over the past 12 months. Losses are predicted to fall substantially, shrinking 22% to kr9.30 per share. Yet prior to the latest estimates, the analysts had been forecasting revenues of kr396m and losses of kr7.41 per share in 2025. Ergo, there's been a clear change in sentiment, with the analysts administering a notable cut to this year's revenue estimates, while at the same time increasing their loss per share forecasts.

See our latest analysis for Hansa Biopharma

The consensus price target fell 16% to kr87.40, with the analysts clearly concerned about the company following the weaker revenue and earnings outlook.

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 clear from the latest estimates that Hansa Biopharma's rate of growth is expected to accelerate meaningfully, with the forecast 94% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 51% p.a. over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 20% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Hansa Biopharma to grow faster than the wider industry.

The Bottom Line

The most important thing to note from this downgrade is that the consensus increased its forecast losses this year, suggesting all may not be well at Hansa Biopharma. Unfortunately, analysts also downgraded their revenue estimates, although our data indicates revenues are expected to perform better than the wider market. With a serious cut to this year's expectations and a falling price target, we wouldn't be surprised if investors were becoming wary of Hansa Biopharma.

As you can see, the analysts clearly aren't bullish, and there might be good reason for that. We've identified some potential issues with Hansa Biopharma's financials, such as dilutive stock issuance over the past year. Learn more, and discover the 3 other concerns we've identified, for 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 backed by insiders.

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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.