Some Analysts Just Cut Their AbCellera Biologics Inc. (NASDAQ:ABCL) Estimates

The latest analyst coverage could presage a bad day for AbCellera Biologics Inc. (NASDAQ:ABCL), with the analysts making across-the-board cuts to their statutory estimates that might leave shareholders a little shell-shocked. This report focused on revenue estimates, and it looks as though the consensus view of the business has become substantially more conservative.

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After the downgrade, the consensus from AbCellera Biologics' seven analysts is for revenues of US$21m in 2025, which would reflect a considerable 8.8% decline in sales compared to the last year of performance. Per-share losses are expected to see a sharp uptick, reaching US$0.65. However, before this estimates update, the consensus had been expecting revenues of US$27m and US$0.59 per share in losses. Ergo, there's been a clear change in sentiment, with the analysts administering a notable cut to this year's revenue estimates, while at the same time increasing their loss per share forecasts.

See our latest analysis for AbCellera Biologics

The consensus price target was broadly unchanged at US$11.43, perhaps implicitly signalling that the weaker earnings outlook is not expected to have a long-term impact on the valuation.

Of course, another way to look at these forecasts is to place them into context against the industry itself. One thing that stands out from these estimates is that shrinking revenues are expected to moderate over the period ending 2025 compared to the historical decline of 20% per annum over the past five years. Compare this against analyst estimates for companies in the broader industry, which suggest that revenues (in aggregate) are expected to grow 6.0% annually. So while a broad number of companies are forecast to grow, unfortunately AbCellera Biologics is expected to see its sales affected worse than other companies in the industry.

The Bottom Line

The most important thing to note from this downgrade is that the consensus increased its forecast losses this year, suggesting all may not be well at AbCellera Biologics. Regrettably, they also downgraded their revenue estimates, and the latest forecasts imply the business will grow sales slower than the wider market. Given the stark change in sentiment, we'd understand if investors became more cautious on AbCellera Biologics after today.

Still, the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple AbCellera Biologics analysts - going out to 2027, and you can see them 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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