Analysts Have Just Cut Their OPKO Health, Inc. (NASDAQ:OPK) Revenue Estimates By 14%

One thing we could say about the analysts on OPKO Health, Inc. (NASDAQ:OPK) - they aren't optimistic, having just made a major negative revision to their near-term (statutory) forecasts for the organization. This report focused on revenue estimates, and it looks as though the consensus view of the business has become substantially more conservative.

Following the latest downgrade, the five analysts covering OPKO Health provided consensus estimates of US$1.2b revenue in 2022, which would reflect a concerning 34% decline on its sales over the past 12 months. Before the latest update, the analysts were foreseeing US$1.3b of revenue in 2022. The consensus view seems to have become more pessimistic on OPKO Health, noting the measurable cut to revenue estimates in this update.

See our latest analysis for OPKO Health

We'd point out that there was no major changes to their price target of US$6.88, suggesting the latest estimates were not enough to shift their view on the value of the business. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. The most optimistic OPKO Health analyst has a price target of US$8.50 per share, while the most pessimistic values it at US$5.50. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

Of course, another way to look at these forecasts is to place them into context against the industry itself. These estimates imply that sales are expected to slow, with a forecast annualised revenue decline of 34% by the end of 2022. This indicates a significant reduction from annual growth of 12% 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 13% per year. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - OPKO Health is expected to lag the wider industry.

The Bottom Line

The most important thing to take away is that analysts cut their revenue estimates for this year. They're also anticipating slower revenue growth than the wider market. Overall, given the drastic downgrade to this year's forecasts, we'd be feeling a little more wary of OPKO Health going forwards.

Want more information? We have estimates for OPKO Health from its five analysts out until 2024, and you can see them 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.