Analysts Have Been Trimming Their Clavister Holding AB (publ.) (STO:CLAV) Price Target After Its Latest Report

The quarterly results for Clavister Holding AB (publ.) (STO:CLAV) were released last week, making it a good time to revisit its performance. Revenues of kr36m beat expectations by a respectable 7.0%, although statutory losses per share increased. Clavister Holding AB (publ.) lost kr0.37, which was 85% more than what the analyst had included in their models. The analyst typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. We've gathered the most recent statutory forecasts to see whether the analyst has changed their earnings models, following these results.

Check out our latest analysis for Clavister Holding AB (publ.)

Taking into account the latest results, the current consensus from Clavister Holding AB (publ.)'s lone analyst is for revenues of kr164.0m in 2023, which would reflect a credible 7.3% increase on its sales over the past 12 months. The loss per share is expected to greatly reduce in the near future, narrowing 47% to kr1.01. Before this latest report, the consensus had been expecting revenues of kr165.0m and kr0.80 per share in losses. While this year's revenue estimates held steady, there was also a sizeable expansion in loss per share expectations, suggesting the consensus has a bit of a mixed view on the stock.

The consensus price target fell 18% to kr7.00per share, with the analyst clearly concerned by ballooning losses.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Clavister Holding AB (publ.)'s past performance and to peers in the same industry. It's clear from the latest estimates that Clavister Holding AB (publ.)'s rate of growth is expected to accelerate meaningfully, with the forecast 9.8% annualised revenue growth to the end of 2023 noticeably faster than its historical growth of 5.6% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to see revenue growth of 19% annually. So it's clear that despite the acceleration in growth, Clavister Holding AB (publ.) is expected to grow meaningfully slower than the industry average.

The Bottom Line

The most important thing to take away is that the analyst increased their loss per share estimates for next year. On the plus side, there were no major changes to revenue estimates; although forecasts imply revenues will perform worse than the wider industry. Furthermore, the analyst also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.

With that in mind, we wouldn't be too quick to come to a conclusion on Clavister Holding AB (publ.). Long-term earnings power is much more important than next year's profits. We have analyst estimates for Clavister Holding AB (publ.) going out as far as 2025, and you can see them free on our platform here.

You should always think about risks though. Case in point, we've spotted 4 warning signs for Clavister Holding AB (publ.) you should be aware of, and 1 of them makes us a bit uncomfortable.

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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.