This Analyst Just Downgraded Their Bulten AB (publ) (STO:BULTEN) EPS Forecasts
One thing we could say about the covering analyst on Bulten AB (publ) (STO:BULTEN) - they aren't optimistic, having just made a major negative revision to their near-term (statutory) forecasts for the organization. Both revenue and earnings per share (EPS) forecasts went under the knife, suggesting the analyst has soured majorly on the business. Surprisingly the share price has been buoyant, rising 15% to kr52.00 in the past 7 days. It will be interesting to see if the downgrade has an impact on buying demand for the company's shares.
After the downgrade, the consensus from Bulten's solitary analyst is for revenues of kr3.0b in 2026, which would reflect a sizeable 20% decline in sales compared to the last year of performance. Statutory earnings per share are anticipated to nosedive 75% to kr0.36 in the same period. Previously, the analyst had been modelling revenues of kr5.0b and earnings per share (EPS) of kr4.45 in 2026. Indeed, we can see that the analyst is a lot more bearish about Bulten's prospects, administering a sizeable cut to revenue estimates and slashing their EPS estimates to boot.
View our latest analysis for Bulten
What's most unexpected is that the consensus price target rose 12% to kr65.00, strongly implying the downgrade to forecasts is not expected to be more than a temporary blip.
Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. We would highlight that sales are expected to reverse, with a forecast 20% annualised revenue decline to the end of 2026. That is a notable change from historical growth of 6.2% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 2.7% annually for the foreseeable future. It's pretty clear that Bulten's revenues are expected to perform substantially worse than the wider industry.
The Bottom Line
The biggest issue in the new estimates is that the analyst has reduced their earnings per share estimates, suggesting business headwinds lay ahead for Bulten. Regrettably, they also downgraded their revenue estimates, and the latest forecasts imply the business will grow sales slower than the wider market. The increasing price target is not intuitively what we would expect to see, given these downgrades, and we'd suggest shareholders revisit their investment thesis before making a decision.
Even so, the longer term trajectory of the business is much more important for the value creation of shareholders. At least one analyst has provided forecasts out to 2028, which can be seen 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 backed by insiders.
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