These Analysts Think Smart Eye AB (publ)'s (STO:SEYE) Sales Are Under Threat

The analysts covering Smart Eye AB (publ) (STO:SEYE) delivered a dose of negativity to shareholders today, by making a substantial revision to their statutory forecasts for this year. This report focused on revenue estimates, and it looks as though the consensus view of the business has become substantially more conservative. Bidders are definitely seeing a different story, with the stock price of kr63.75 reflecting a 19% rise in the past week. With such a sharp increase, it seems brokers may have seen something that is not yet being priced in by the wider market.

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Following the downgrade, the most recent consensus for Smart Eye from its twin analysts is for revenues of kr458m in 2025 which, if met, would be a substantial 28% increase on its sales over the past 12 months. Prior to the latest estimates, the analysts were forecasting revenues of kr501m in 2025. The forecasts seem less optimistic overall, with the modest decline in revenue estimates in the latest consensus update.

See our latest analysis for Smart Eye

There was no particular change to the consensus price target of kr111, with Smart Eye's latest outlook seemingly not enough to result in a change of valuation.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We can infer from the latest estimates that forecasts expect a continuation of Smart Eye'shistorical trends, as the 38% annualised revenue growth to the end of 2025 is roughly in line with the 35% annual revenue growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 7.5% per year. So although Smart Eye is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider industry.

The Bottom Line

The clear low-light was that analysts slashing their revenue forecasts for Smart Eye this year. They're also forecasting more rapid revenue growth than the wider market. Given the stark change in sentiment, we'd understand if investors became more cautious on Smart Eye after today.

There might be good reason for analyst bearishness towards Smart Eye, like a short cash runway. For more information, you can click here to discover this and the 1 other risk we've identified.

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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.