This Analyst Just Downgraded Their Maven Wireless Sweden AB (Publ) (STO:MAVEN) EPS Forecasts

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. Revenue and earnings per share (EPS) forecasts were both revised downwards, with the analyst seeing grey clouds on the horizon.

Following the downgrade, the most recent consensus for Maven Wireless Sweden from its single analyst is for revenues of kr293m in 2024 which, if met, would be a satisfactory 7.8% increase on its sales over the past 12 months. Per-share earnings are expected to expand 14% to kr0.94. Previously, the analyst had been modelling revenues of kr342m and earnings per share (EPS) of kr1.22 in 2024. Indeed, we can see that the analyst is a lot more bearish about Maven Wireless Sweden's prospects, administering a measurable cut to revenue estimates and slashing their EPS estimates to boot.

Check out our latest analysis for Maven Wireless Sweden

It'll come as no surprise then, to learn that the analyst has cut their price target 12% to kr22.00.

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 Maven Wireless Sweden's revenue growth is expected to slow, with the forecast 7.8% annualised growth rate until the end of 2024 being well below the historical 65% p.a. growth over the last three years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 3.3% annually. So it's pretty clear that, while Maven Wireless Sweden's revenue growth is expected to slow, it's still expected to grow faster than the industry itself.

The Bottom Line

The biggest issue in the new estimates is that the analyst has reduced their earnings per share estimates, suggesting business headwinds lay ahead for Maven Wireless Sweden. While the analyst did downgrade their revenue estimates, these forecasts still imply revenues will perform better 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.

After a downgrade like this, it's pretty clear that previous forecasts were too optimistic. What's more, we've spotted several possible issues with Maven Wireless Sweden's business, like concerns around earnings quality. Learn more, and discover the 1 other risk 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.