Some Devyser Diagnostics AB (publ) (STO:DVYSR) Analysts Just Made A Major Cut To Next Year's Estimates
The latest analyst coverage could presage a bad day for Devyser Diagnostics AB (publ) (STO:DVYSR), with the analysts making across-the-board cuts to their statutory estimates that might leave shareholders a little shell-shocked. Both revenue and earnings per share (EPS) estimates were cut sharply as analysts factored in the latest outlook for the business, concluding that they were too optimistic previously.
Following the latest downgrade, the three analysts covering Devyser Diagnostics provided consensus estimates of kr251m revenue in 2026, which would reflect a perceptible 2.6% decline on its sales over the past 12 months. Per-share earnings are expected to shoot up 95% to kr1.74. Previously, the analysts had been modelling revenues of kr301m and earnings per share (EPS) of kr2.49 in 2026. It looks like analyst sentiment has declined substantially, with a substantial drop in revenue estimates and a pretty serious decline to earnings per share numbers as well.
View our latest analysis for Devyser Diagnostics
The consensus price target fell 10% to kr.93.79, with the weaker earnings outlook clearly leading analyst valuation estimates. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. There are some variant perceptions on Devyser Diagnostics, with the most bullish analyst valuing it at kr.113 and the most bearish at kr.71.17 per share. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Devyser Diagnostics shareholders.
Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that sales are expected to reverse, with a forecast 3.5% annualised revenue decline to the end of 2026. That is a notable change from historical growth of 21% over the last three 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 - Devyser Diagnostics is expected to lag the wider industry.
The Bottom Line
The biggest issue in the new estimates is that analysts have reduced their earnings per share estimates, suggesting business headwinds lay ahead for Devyser Diagnostics. Unfortunately analysts also downgraded their revenue estimates, and industry data suggests that Devyser Diagnostics' revenues are expected to grow slower than the wider market. With a serious cut to this year's expectations and a falling price target, we wouldn't be surprised if investors were becoming wary of Devyser Diagnostics.
So things certainly aren't looking great, and you should also know that we've spotted some potential warning signs with Devyser Diagnostics, including concerns around earnings quality. For more information, you can click here to discover this and the 1 other flag 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.