Maven Wireless Sweden AB (Publ)'s (STO:MAVEN) Analyst Just Slashed This Year's Estimates

The latest analyst coverage could presage a bad day for Maven Wireless Sweden AB (Publ) (STO:MAVEN), with the covering analyst making across-the-board cuts to their statutory estimates that might leave shareholders a little shell-shocked. Both revenue and earnings per share (EPS) forecasts went under the knife, suggesting the analyst has soured majorly on the business.

After the downgrade, the consensus from Maven Wireless Sweden's solo analyst is for revenues of kr196m in 2024, which would reflect an uncomfortable 19% decline in sales compared to the last year of performance. Statutory earnings per share are anticipated to plummet 53% to kr0.16 in the same period. Previously, the analyst had been modelling revenues of kr235m and earnings per share (EPS) of kr0.32 in 2024. Indeed, we can see that the analyst is a lot more bearish about Maven Wireless Sweden's prospects, administering a substantial drop in revenue estimates and slashing their EPS estimates to boot.

See our latest analysis for Maven Wireless Sweden

The consensus price target fell 24% to kr13.00, with the weaker earnings outlook clearly leading analyst valuation 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 would highlight that sales are expected to reverse, with a forecast 19% annualised revenue decline to the end of 2024. That is a notable change from historical growth of 45% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 3.8% per year. It's pretty clear that Maven Wireless Sweden'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 cut their earnings per share estimates, expecting a clear decline in business conditions. Regrettably, they also downgraded their revenue estimates, and the latest forecasts imply the business will grow sales slower than the wider market. After such a stark change in sentiment from the analyst, we'd understand if readers now felt a bit wary of Maven Wireless Sweden.

That said, this analyst might have good reason to be negative on Maven Wireless Sweden, given concerns around earnings quality. Learn more, and discover the 1 other warning sign we've identified, for free on our platform here.

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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.