What does the future hold for Biocorp (EPA:ALCOR) production? These analysts have reduced their estimates

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Market forces rained on the parade of Biocorp Production (EPA:ALCOR) shareholders today when analysts lowered their forecasts for this year. There’s been a pretty drastic reduction in their revenue estimates, perhaps an implicit admission that previous forecasts were far too optimistic. Surprisingly, the stock price has been buoyant, rising 11% to €30.50 in the past 7 days. Whether the downgrade will have a negative impact on equity demand remains to be seen.

Following the downgrade, the current consensus of Biocorp Production’s three analysts is for sales of €13 million in 2022 which, if achieved, would reflect a substantial 29% increase in sales over the last 12 months. Earnings per share are expected to jump 273% to €0.25. Prior to this latest update, analysts were forecasting revenue of €16 million and earnings per share (EPS) of €0.25 in 2022. So there has been a clear shift in analyst sentiment in the recent update, with analysts making a measurable reduction in revenue. and reconfirm their earnings per share estimates.

See our latest analysis for Biocorp Production

ENXTPA: ALCOR Earnings and Revenue Growth June 26, 2022

analysts also raised their price target by 8.9% to €39.77, making it clear that lower revenue expectations this year are unlikely to have a significant impact on Biocorp Production’s valuation. The consensus price target is only an average of individual analyst targets, so it might be useful to see how wide the range of the underlying estimates is. There are a few different perceptions on Biocorp Production, with the most bullish analyst pricing it at €43.80 and the most bearish at €36.00 per share. Still, with such a narrow range of estimates, it suggests analysts have a pretty good idea of ​​what they think the company is worth.

Of course, another way to look at these predictions is to put them in context with the industry itself. The period through the end of 2022 brings more of the same, analysts say, with revenue forecast to show growth of 29% on an annualized basis. This matches its annual growth of 29% over the past five years. Contrast that with the broader industry, which analysts estimate (in aggregate) will see revenue grow 4.2% annually. It is therefore quite clear that Biocorp Production should grow much faster than its industry.

The essential

The most important thing to remember is that there has been no major shift in sentiment, with analysts confirming that earnings per share should continue to perform in line with their earlier expectations. Unfortunately, analysts have also lowered their earnings estimates, although our data indicates that earnings should perform better than the broader market. There was also a nice rise in the price target, with analysts apparently believing that the company’s intrinsic value is improving. Overall, given the drastic downgrade to this year’s guidance, we would feel a bit more wary of Biocorp Production going forward.

That said, analysts may have good reason to be negative on Biocorp Production, given concerns over earnings quality. For more information, you can click here to find out about this and the 1 other issue we have identified.

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

This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.


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