Need To Know: Analysts Are Much More Bullish On SAB Biotherapeutics, Inc. (NASDAQ:SABS) Revenues

Shareholders in SAB Biotherapeutics, Inc. (NASDAQ:SABS) may be thrilled to learn that the analysts have just delivered a major upgrade to their near-term forecasts. The revenue forecast for next year has experienced a facelift, with analysts now much more optimistic on its sales pipeline. The stock price has risen 6.2% to US$1.20 over the past week, suggesting investors are becoming more optimistic. It will be interesting to see if this latest upgrade is enough to kickstart further buying interest in the stock.

After the upgrade, the consensus from SAB Biotherapeutics' twin analysts is for revenues of US$20m in 2023, which would reflect a painful 38% decline in sales compared to the last year of performance. Losses are supposed to balloon 23% to US$0.64 per share. Yet prior to the latest estimates, the analysts had been forecasting revenues of US$22m and losses of US$0.67 per share in 2023. It looks like there's been a modest increase in sentiment in the recent updates, with the analysts becoming a bit more optimistic in their predictions for losses per share, even though the revenue numbers fell somewhat.

View our latest analysis for SAB Biotherapeutics

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the SAB Biotherapeutics' past performance and to peers in the same industry. We would highlight that sales are expected to reverse, with a forecast 32% annualised revenue decline to the end of 2023. That is a notable change from historical growth of 16% over the last three years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 14% annually for the foreseeable future. It's pretty clear that SAB Biotherapeutics' revenues are expected to perform substantially worse than the wider industry.

The Bottom Line

Unfortunately analysts also downgraded their revenue estimates, and industry data suggests that SAB Biotherapeutics' revenues are expected to grow slower than the wider market. Given that analysts appear to be expecting substantial improvement in the sales pipeline, now could be the right time to take another look at SAB Biotherapeutics.

Analysts are clearly in love with SAB Biotherapeutics at the moment, but before diving in - you should be aware that we've identified some warning flags with the business, such as a short cash runway. You can learn more, and discover the 3 other warning signs we've identified, for free on our platform here.

Another way to search for interesting companies that could be reaching an inflection point is to track whether management are buying or selling, with our free list of growing companies that insiders are buying.

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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.