Stock Analysis
Hansa Biopharma AB (publ) (STO:HNSA) Analysts Are Cutting Their Estimates: Here's What You Need To Know
As you might know, Hansa Biopharma AB (publ) (STO:HNSA) last week released its latest full-year, and things did not turn out so great for shareholders. It was not a great statutory result, with revenues coming in 22% lower than the analysts predicted. Unsurprisingly, earnings also fell seriously short of forecasts, turning into a per-share loss of kr12.84. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.
Check out our latest analysis for Hansa Biopharma
Following the latest results, Hansa Biopharma's five analysts are now forecasting revenues of kr312.9m in 2025. This would be a substantial 83% improvement in revenue compared to the last 12 months. Losses are supposed to decline, shrinking 20% from last year to kr9.53. Yet prior to the latest earnings, the analysts had been forecasting revenues of kr395.9m and losses of kr7.41 per share in 2025. There's been a definite change in sentiment in this update, with the analysts administering a notable cut to next year's revenue estimates, while at the same time increasing their loss per share forecasts.
The consensus price target fell 14% to kr89.40, with the analysts clearly concerned about the company following the weaker revenue and earnings outlook. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. There are some variant perceptions on Hansa Biopharma, with the most bullish analyst valuing it at kr143 and the most bearish at kr46.00 per share. So we wouldn't be assigning too much credibility to analyst price targets in this case, because there are clearly some widely different views on what kind of performance this business can generate. With this in mind, we wouldn't rely too heavily the consensus price target, as it is just an average and analysts clearly have some deeply divergent views on the business.
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. The analysts are definitely expecting Hansa Biopharma's growth to accelerate, with the forecast 83% annualised growth to the end of 2025 ranking favourably alongside historical growth of 51% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 20% annually. 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 take away is that the analysts increased 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. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of Hansa Biopharma's future valuation.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for Hansa Biopharma going out to 2027, and you can see them free on our platform here..
You still need to take note of risks, for example - Hansa Biopharma has 5 warning signs (and 2 which are significant) we think you should know about.
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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.
About OM:HNSA
Hansa Biopharma
A biopharmaceutical company, engages in development and commercialization of treatments for patients with rare immunological conditions in Europe and the United States.