CellaVision AB (publ) Just Beat EPS By 21%: Here's What Analysts Think Will Happen Next

CellaVision AB (publ) (STO:CEVI) just released its third-quarter report and things are looking bullish. The company beat forecasts, with revenue of kr200m, some 2.9% above estimates, and statutory earnings per share (EPS) coming in at kr1.68, 21% ahead of expectations. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on CellaVision after the latest results.

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After the latest results, the three analysts covering CellaVision are now predicting revenues of kr883.9m in 2027. If met, this would reflect a decent 16% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to bounce 35% to kr7.82. Yet prior to the latest earnings, the analysts had been anticipated revenues of kr878.9m and earnings per share (EPS) of kr7.51 in 2027. So the consensus seems to have become somewhat more optimistic on CellaVision's earnings potential following these results.

Check out our latest analysis for CellaVision

The analysts have been lifting their price targets on the back of the earnings upgrade, with the consensus price target rising 9.2% to kr198. 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. Currently, the most bullish analyst values CellaVision at kr220 per share, while the most bearish prices it at kr175. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. The analysts are definitely expecting CellaVision's growth to accelerate, with the forecast 12% annualised growth to the end of 2027 ranking favourably alongside historical growth of 6.2% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 9.5% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that CellaVision is expected to grow much faster than its industry.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards CellaVision following these results. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for CellaVision going out to 2028, and you can see them free on our platform here.

You can also see our analysis of CellaVision's Board and CEO remuneration and experience, and whether company insiders have been buying stock.

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