One Forecaster Is Now More Bearish On Xbrane Biopharma AB (publ) (STO:XBRANE) Than They Used To Be

The latest analyst coverage could presage a bad day for Xbrane Biopharma AB (publ) (STO:XBRANE), with the covering analyst 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 analyst seeing grey clouds on the horizon.

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Following the downgrade, the consensus from single analyst covering Xbrane Biopharma is for revenues of kr185m in 2026, implying a concerning 29% decline in sales compared to the last 12 months. The loss per share is anticipated to greatly reduce in the near future, narrowing 45% to kr4.14. Previously, the analyst had been modelling revenues of kr428m and earnings per share (EPS) of kr9.63 in 2026. So we can see that the consensus has become notably more bearish on Xbrane Biopharma's outlook with these numbers, making a pretty serious reduction to next year's revenue estimates. Furthermore, they expect the business to be loss-making next year, compared to their previous forecasts of a profit.

View our latest analysis for Xbrane Biopharma

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. We would highlight that sales are expected to reverse, with a forecast 24% annualised revenue decline to the end of 2026. That is a notable change from historical growth of 55% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 11% annually for the foreseeable future. It's pretty clear that Xbrane Biopharma's revenues are expected to perform substantially worse than the wider industry.

The Bottom Line

The most important thing to take away is that the analyst is expecting Xbrane Biopharma to become unprofitable next year. Unfortunately the analyst also downgraded their revenue estimates, and industry data suggests that Xbrane Biopharma's revenues are expected to grow slower than the wider market. After a cut like that, investors could be forgiven for thinking the analyst is a lot more bearish on Xbrane Biopharma, and a few readers might choose to steer clear of the stock.

So things certainly aren't looking great, and you should also know that we've spotted some potential warning signs with Xbrane Biopharma, including a short cash runway. Learn more, and discover the 1 other flag we've identified, for 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 with high insider ownership.

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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.