Revenue Downgrade: Here's What Analysts Forecast For ALM Equity AB (publ) (STO:ALM)
One thing we could say about the analysts on ALM Equity AB (publ) (STO:ALM) - they aren't optimistic, having just made a major negative revision to their near-term (statutory) forecasts for the organization. There was a fairly draconian cut to their revenue estimates, perhaps an implicit admission that previous forecasts were much too optimistic.
After the downgrade, the twin analysts covering ALM Equity are now predicting revenues of kr920m in 2026. If met, this would reflect an okay 4.9% improvement in sales compared to the last 12 months. Losses are predicted to fall substantially, shrinking 51% to kr8.30 per share. Yet before this consensus update, the analysts had been forecasting revenues of kr1.4b and losses of kr8.30 per share in 2026. So there's been quite a change-up of views after the recent consensus updates, with the analysts making a serious cut to their revenue forecasts while also making no real change to the loss per share numbers.
View our latest analysis for ALM Equity
There was no real change to the consensus price target of kr103, suggesting that the revisions to revenue estimates are not expected to have a long-term impact on ALM Equity's valuation.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the ALM Equity's past performance and to peers in the same industry. For example, we noticed that ALM Equity's rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 10% growth to the end of 2026 on an annualised basis. That is well above its historical decline of 12% a year over the past five years. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 3.4% annually. Not only are ALM Equity's revenues expected to improve, it seems that the analysts are also expecting it to grow faster than the wider industry.
The Bottom Line
While analysts did downgrade their revenue estimates, these forecasts still imply revenues will perform better than the wider market. Given the stark change in sentiment, we'd understand if investors became more cautious on ALM Equity after today.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have analyst estimates for ALM Equity going out as far as 2028, and you can see them free on our platform here.
Of course, seeing company management invest large sums of money in a stock can be just as useful as knowing whether analysts are downgrading their estimates. So you may also wish to search this free list of stocks with high insider ownership.
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