One CombinedX AB (publ) (STO:CX) Analyst Has Been Cutting Their Forecasts

Market forces rained on the parade of CombinedX AB (publ) (STO:CX) shareholders today, when the covering analyst downgraded their forecasts for next year. Revenue estimates were cut sharply as the analyst signalled a weaker outlook - perhaps a sign that investors should temper their expectations as well.

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Following the latest downgrade, the current consensus, from the single analyst covering CombinedX, is for revenues of kr591m in 2027, which would reflect a concerning 44% reduction in CombinedX's sales over the past 12 months. Before the latest update, the analyst was foreseeing kr704m of revenue in 2027. The consensus view seems to have become more pessimistic on CombinedX, noting the measurable cut to revenue estimates in this update.

View our latest analysis for CombinedX

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the CombinedX's past performance and to peers in the same industry. These estimates imply that sales are expected to slow, with a forecast annualised revenue decline of 37% by the end of 2027. This indicates a significant reduction from annual growth of 13% 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 4.5% per year. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - CombinedX is expected to lag the wider industry.

The Bottom Line

The clear low-light was that the analyst slashing their revenue forecasts for CombinedX next year. They're also anticipating slower revenue growth than the wider market. After a cut like that, investors could be forgiven for thinking the analyst is a lot more bearish on CombinedX, and a few readers might choose to steer clear of the stock.

So things certainly aren't looking great, and you should also know that we've spotted some potential warning signs with CombinedX, including concerns around earnings quality. For more information, you can click here to discover this and the 2 other warning signs we've identified.

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